Why Is Intermediating Houses So Difficult? Evidence from iBuyers

This paper examines frictions in dealer intermediation in durable consumer goods markets, using iBuyers — technology-driven real estate companies such as Opendoor and Offerpad — as a lens. The central research question is why dealer intermediation, which provides immediate liquidity by purchasing assets onto a balance sheet and reselling, is so limited in the U.S. housing market (valued at $50 trillion and representing roughly 70% of the median household’s net worth) relative to other durable goods markets such as automobiles.

Amit Seru | Macro Paper Warehouse

Why Is Intermediating Houses So Difficult? Evidence from iBuyers