Investor-owned rentals make strange neighbors

TRD MIAMI /
Apr.April 30, 2013 11:00 AM

The fabric and feel of neighborhoods is changing as investors buy swaths of distressed single-family homes to rent, the Palm Beach Post reported.

“There are a lot of nice people here, I will say that, but I don’t know them,” Bryan Melzard, 34, a resident of the 100-home Greenacres development, told the Post. “It very much seems to me like an apartment-type of complex now,” he said.

Wall Street hedge funds and other large institutional investors started buying up single-family homes in foreclosure in Palm Beach County about a year ago, according to the Post.

“Already, hundreds of Palm Beach County homes are owned by firms such as the Connecticut-based Starwood Property Trust, the Blackstone Group in New York and Canada’s Tricon Capital. The idea is to buy and rent until prices increase enough to make selling profitable,” the report said.

Homeownership rates have plunged nationwide and even more dramatically in South Florida, where the homeownership rate of 71 percent in 2005 slid to 58.7 percent in December, according to the Post.

Statewide, the homeownership rate of families with children fell from 67 percent in 2000 to 60 percent in 2011, the newspaper said, citing Anne Ray, a manager at the Shimberg Center for Housing Studies at the University of Florida.

“In the early 2000s, there were a lot of homes selling that would be affordable for low income households, and most were purchased by homeowners,” Ray told the Post. “By 2009 and 2010, there is the same level of sales of affordable homes, but more than half are being bought by investors.” [Palm Beach Post]Emily Schmall


Related Articles

arrow_forward_ios
Mayor Carlos Gimenez (Credit: Joe Raedle/Getty Images)

Miami-Dade approves $10M emergency rent relief program

Miami-Dade approves $10M emergency rent relief program
Vacation rentals, gyms, fitness studios get the green light to resume operations in Miami-Dade

Short-term rentals, gyms, fitness studios can operate again in Miami-Dade

Short-term rentals, gyms, fitness studios can operate again in Miami-Dade
Mayor of Miami Beach Dan Gelber (Credit: Nicholas Hunt/Getty Images)

Miami Beach creates $550K rent relief fund

Miami Beach creates $550K rent relief fund
A photo illustration of Key West (Credit: iStock)

All hotels and short-term rentals to shut down in Florida Keys

All hotels and short-term rentals to shut down in Florida Keys
Quadro at Design District and Rainmundo Onetto

Alta Developers launches sales of Quadro at Design District

Alta Developers launches sales of Quadro at Design District
Airbnb operators cash In On Super Bowl LIV

South Florida Airbnb hosts cash in on Super Bowl LIV

South Florida Airbnb hosts cash in on Super Bowl LIV
Airbnb hosts gear up for Super Bowl LIV

Airbnb hosts score 34K bookings for Super Bowl LIV — more than for Art Basel

Airbnb hosts score 34K bookings for Super Bowl LIV — more than for Art Basel
Rendering of One Eleven Wynwood Hotel by Sonder and Eduardo Vargas, Andres Hogg and Andres Klein

Sonder inks lease for flagship Wynwood hotel

Sonder inks lease for flagship Wynwood hotel
arrow_forward_ios

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

Loading...