Landlord investors keeping market stable

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
Is “medtail” a cure for Manhattan’s vacant storefronts?
Is “medtail” a cure for Manhattan’s vacant storefronts?
Is “medtail” a cure for Manhattan’s vacant storefronts?
Boxed out: Supply chain, energy crises rock real estate
Boxed out: Supply chain, energy crises rock real estate
Boxed out: Supply chain, energy crises rock real estate
Senator Chuck Schumer and 70 Prospect Park West (Google Maps, Getty)
Schumer blasts Brooklyn landlord as NY pols vow to pass good cause eviction
Schumer blasts Brooklyn landlord as NY pols vow to pass good cause eviction
New law for immigrants seen as pointless for undocumented tenants
New law for immigrants seen as little help for undocumented tenants
New law for immigrants seen as little help for undocumented tenants
Who is still buying NYC’s rent-stabilized buildings?
Who is still buying NYC’s rent-stabilized buildings?
Who is still buying NYC’s rent-stabilized buildings?
Council bill would require landlords to pay for tenants’ internet
Council bill would require landlords to pay for tenants’ internet
Council bill would require landlords to pay for tenants’ internet
Tenant advocates argue that eviction bans protect the most vulnerable (Getty)
Voucher recipients less likely to be vulnerable to eviction, study finds
Voucher recipients less likely to be vulnerable to eviction, study finds
Comptroller Scott Stringer (Getty)
City landlords’ tax delinquencies approach Great Recession levels
City landlords’ tax delinquencies approach Great Recession levels
arrow_forward_ios

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

Loading...