[rayiner]

That's wrong for the reasons mentioned here: https://www.theatlantic.com/ideas/archive/2023/01/housing-cr...

For one thing, institutional buyers don't buy up enough of the supply to really move the needle in most metro areas. For another, institutional buyers generally turn homes into rentals. They can't really overpay for the housing unless there's lots of yuppies around who can pay the high rents.

Supply shortages are certainly a factor, but they're related to the problem I pointed out. California knowledge worker yuppies are facing supply shortages in their own market, and getting pushed out to cheaper markets like Oregon. That has a particularly negative effect because they have so much more money than the people who are already living in those places.