Home prices across globe hit records, prompting worries of bubble
More companies and fewer investment banks are putting money into affordable housing developments, according to the New York Times, after many financial groups scaled back their involvement in the wake of the recession. While many financial institutions, including Fannie Mae and Freddie Mac, were the old standby investors of low-income housing tax credits during the pre-Lehman era, an increased focus on liquidity after the market crash caused many to back off. Today, experts say, the credits have become popular with big-name companies like Verizon, Google and insurance groups Liberty Mutual and Allstate. But while this new breed of investors has propped up in an otherwise tenuous low-income housing industry, Robert Wasserman, a managing director with U.S. Bancorp, said he’s unsure whether their involvement can last. “Will these new investors stay in the market?” Wasserman asked, “So far, we think it will go on for another year. I don’t know what’s going to happen after that.” [NYT]
