Real Estate

PPP loan fraud drove home price inflation in some markets, study suggests


Prospective buyers are welcomed by real estate agents at an open house in West Hempstead, New York on April 18, 2021.

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PPP loan fraud affected home prices

U.S. home prices rose by 24% between November 2019 and November 2021, according to the Federal Reserve Bank of San Francisco, driven by factors such as shifting demand and regional moves.

However, government aid may have also contributed to that growth, including higher rates of fraudulent PPP loans in certain areas, according to the new research.

This is a very specific type of stimulus that injected cash into certain areas, and it seems to have played a pretty significant role.

Sam Kruger

Assistant professor of…


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