Landlord investors keeping market stable

TRD New York /
Mar.March 25, 2013 11:30 AM

House flippers and speculative buyers fed the housing frenzy before to the recession; investors today, though, are buying with the intention of holding on to their properties and renting them out, according to the Wall Street Journal.

And this buy-and-hold philosophy is helping stabilize prices, market analysts and executives told the Journal.

“Whether they knew it or not, investors helped set a floor. They warmed up the market, and it brought buyers back,” Lanny Baker, CEO of ZipRealty, said.

Right now, all-cash buyers — largely investors — account for nearly a third of home sales nationwide, according to the National Association of Realtors. And rentals are becoming more popular, with homeownership at 65 percent last year, falling from 69 percent in 2005.

“We’re clearly at the beginning of a rental boom,” Christopher Thornberg of Beacon Economics, said. “We all saw there had to be a shift towards renting single-family units that owners could no longer afford. Investors played a critical role in that transformation.” [WSJ] —Christopher Cameron


Related Articles

arrow_forward_ios
A federal judge in New York has rejected claims by three landlords in that Gov. Andrew Cuomo’s eviction moratorium violates their rights. (Getty)

New York’s eviction moratorium still stands, court rules

New York’s eviction moratorium still stands, court rules
Adam Pincus

Inside the legal strategy to topple New York’s rent law

Inside the legal strategy to topple New York’s rent law
Judge Jean Schneider (Credit: iStock, NYCourts.gov)

Housing court ends hopes to advance eviction cases

Housing court ends hopes to advance eviction cases
(Credit: U.S. Dept. of the Treasury, iStock)

Banks can snatch stimulus checks before landlords see a dime

Banks can snatch stimulus checks before landlords see a dime
Special Report Stimulus Package

What the $2 trillion stimulus does for real estate

What the $2 trillion stimulus does for real estate
CHIP's Jay Martin 

“The landlord is just a collection agent for the city,” CHIP head argues

“The landlord is just a collection agent for the city,” CHIP head argues
Edgar Moncayo (inset) and his property at 32-42 102nd Street (Credit: Google Maps)

Queens landlord dies after tenant knocks him down stairs: police

Queens landlord dies after tenant knocks him down stairs: police
New York Capital Region Apartment Association spokesperson Jaime Cain (Credit: iStock, Boylan Code)

Landlords of the world, unite?

Landlords of the world, unite?
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...