Greed is good — even in suburbia

Large investment firms are betting big on single-family homes in the US suburbs

TRD NEW YORK /
Jul.July 21, 2017 02:30 PM

Big companies banking on homeownership rates staying low are scooping up suburban single-family homes across the country.

Firms like American Homes 4 Rent, Colony Starwood Homes, Progress Residential and Streetlane Homes have spent $40 billion buying 200,000 houses to rent out across the United States, the Wall Street Journal reported, Citing Data From Green Street Advisors. However, they still own less than 2 percent of American rentals.

In the Tennessee town of Spring Hill, those four investors own nearly 700 houses, tax records show. That’s around three-quarters of the homes that are available to rent in the town, the local Realtors’ Association told the newspaper.

The companies are relying on homeownership keeping down and rental prices continuing to rise. American homeownership is at a 50-year low, according to the Journal.

“The rental stigma has really subsided,” Michael Cook, the operations chief Streetlane Homes, which owns about 4,000 houses. “People are realizing that houses are not necessarily the best places to store wealth.”

Big investment firms previously focused on apartment buildings, office towers, shopping centers and warehouses. But during the financial crisis, when millions of homes were sold in foreclosure auctions, they started picking up homes to rent out. Thomas Barrack Jr. and Barry Sternlicht, who combined their holdings into Colony Starwood, and Blackstone Group were among the buyers. In 2013, Blackstone Group completed its first sale of bonds backed by rental home payments. [WSJ]Miriam Hall


Related Articles

arrow_forward_ios
(Illustration by Dave Murray)

The squeeze on resi brokerages is forcing consolidation, cooperation

Localize.city president Steve Kalifowitz (Credit: iStock)

Rental listing prices jump on hundreds of apartments during broker fee ban: report

From left: 55 East 74th Street, 9 East 82nd Street, 1 Central Park South, 78 Irving Place with Adam Neumann and 111 West 57th Street (Credit: StreetEasy, Wikipedia, Getty Images)

Adam Neumann’s triplex, Russians’ Plaza pad were priciest homes listed last week

3 East 69th Street and 252 East 57th Street 

With asking prices in freefall, luxury market sees strong week

Keller Williams CEO Gary Keller

Keller Williams will cut off agents who leave

Wall Street bonus season is the stuff home sellers’ dreams, as they picture eager buyers armed with hefty bonus checks and willing to pay top price. But in a buyer’s market that vision may be more like a mirage (Credit: iStock)

Here’s what Wall Street bonus season means for real estate this year

Adam Neumann and 78 Irving Place (Credit: Getty Images and StreetEasy)

Adam Neumann is asking $37M for Gramercy Park triplex

Living founders Devin Someck and Jon Bakhash

Living New York acquires Mdrn. amid tumult in rental market

arrow_forward_ios
Loading...