[usaar333]

It depends where you are.

I'd argue the SF Bay Area is not being driven by investors (many investors think it is bad to invest given the very low rent yields), but by supply constraints themselves.

The supply constraints are not so much financial, but being driven by residents who don't want their neighborhood to change. And since they don't suffer (no property tax increases come with the home value increase), there's not much push back other than the moral argument that their children can't afford homes anymore.

[jplayer01]

You're right. I just didn't want to write an essay. There are a number of incentives that motivate owners to prefer supply constraints.