Cash purchases of homes still represent an abnormally high level of total transactions.
Alex Slobodkin

Young adults are sitting on the sidelines of the housing market for a number of reasons, but one of the biggest is investors who buy the homes they want and turn around and rent them out for increasing amounts. TIME staffer Martha C. White takes a look at this growing isssue, with one in four homes being brought by investors with cash.

While the number of investors buying homes fell their from their peak of almost one in three, they are still most likely to snatch up the starter homes young adults want:

“Home supply is diminishing but investor demand is not going away,” Lawrence Yun, chief economist for the National Association of Realtors, told the Journal, which reported that the number of homes on the market below the $100,000 mark fell by about 11% in only a year.

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