Author Type

Undergraduate Student

Date of Award

Spring 4-27-2025

Document Type

Thesis

Publication Status

Version of Record

Submission Date

July 2026

College Granting Degree

Harriet L. Wilkes Honors College

Thesis/Dissertation Advisor [Chair]

Kanybek Nur-tegin

Abstract

The 2008 financial crisis revealed substantial vulnerabilities in the housing market and financial sector, in which private equity firms and institutional investors played an important role. This thesis analyzes the impact of Blackstone, KKR, Bain Capital, and Apollo Global Management on the housing bubble, speculative investments, and post-crisis strategies. Results suggest that systemic risks were enabled by leveraged acquisitions, subprime mortgage investments, and large-scale real estate speculation, and post-crisis asset acquisition enabled these firms to profit from market downturns. Although regulatory responses, such as the Dodd-Frank Act and the Volcker Rule, were enacted to help mitigate future crises, institutional investors remain predominant in real estate markets and create the worry of continued affordability and stability. To prevent another crisis, regulatory oversight needs to be stronger, transparency in institutional homeownership should be improved, and leverage controls should be stricter. The long-term effects of private equity in real estate, as well as the effectiveness of financial reforms, should be assessed in future research.

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