The combination of a hot U.S. rental market and a tight home lending climate has investors racing to raise money for buy-to-rent single-family homes, but Bloomberg News reported they aren’t finding enough suitable properties that warrant the money.
Investment funds, including Colony Capital and Och-Ziff Capital Management, are meeting little resistance in attempts to raise money as home prices remain 35 percent off 2006 levels. Bloomberg said they’ve raised a total of $6.4 billion for single-family rentals. However, the inventory of low-cost foreclosures has plummeted. [more]