I would like to see the facts behind that statement, because I have not seen it. One fund made a small (100 unit) purchase from Fannie Mae at the end of 2012. that pales in comparison to the 600 and 900 unit purchases in other metro areas.
We get inquiries all the time from people who say they represent a fund with $10 mil or $20 mil to spend in the Chicago market, and yet you do not see any large bulk purchases once they get a look at the areas where there is the opportunity for this.
I work in Garfield Park and can tell you there is a ton of inventory there and no buyers in sight for foreclosures or finished product. I do wish there was, but these people are coming out of Florida, Nevada, California and Arizona, where the housing stock was newer and the market has had a more robust rebound that ours.
when they see the west and south side of the city, they are not motivated nor do they see the same returns based on income and re-sale.