posted June 09, 2021 11:07 AM
What's this all about?
http://www.wsj.com/articles/if-you-sell-a-house-these-days-the-buyer-m ight-be-a-pension-fund-11617544801 A bidding war broke out this winter at a new subdivision north of Houston. But the prize this time was the entire subdivision, not just a single suburban house, illustrating the rise of big investors as a potent new force in the U.S. housing market.
D.R. Horton Inc. DHI -1.56% built 124 houses in Conroe, Texas, rented them out and then put the whole community, Amber Pines at Fosters Ridge, on the block. A Who’s Who of investors and home-rental firms flocked to the December sale. The winning $32 million bid came from an online property-investing platform, Fundrise LLC, which manages more than $1 billion on behalf of about 150,000 individuals.
The country’s most prolific home builder booked roughly twice what it typically makes selling houses to the middle class—an encouraging debut in the business of selling entire neighborhoods to investors.
http://www.wsj.com/articles/meet-your-new-landlord-wall-street-1500647417?mod=arti cle_inline
SPRING HILL, Tenn.—When real-estate agent Don Nugent listed a three-bedroom, two-bath house here on Jo Ann Drive, offers came immediately, including a $208,000 one from a couple with a young child looking for their first home.
A competing bid was too attractive to pass up. American Homes 4 Rent, AMH 0.16% a public company that had been scooping up homes in the neighborhood, offered the same amount—but all cash, no inspection required.
Twelve hours after the house went on the market in April, the Agoura Hills, Calif.-based real-estate investment trust signed a contract. About a month later, it put the house back on the market, this time for rent, for $1,575 a month.
A new breed of homeowners has arrived in this middle-class suburb of Nashville and in many other communities around the country: big investment firms in the business of offering single-family homes for rent. Their appearance has shaken up sales and rental markets and, in some neighborhoods, sparked rent increases.
http://nypost.com/2020/07/18/corporations-are-buying-houses-robbing-familie s-of-american-dream/amp/
On a large scale, the trend of corporations buying up homes and renting them out could have a drastic long-term effect on the ability of many families to own a piece of the American Dream.
“Many Americans save money only unintentionally, when they make their mortgage payments each month and accrue equity in their homes,” Dezember writes.
“If homeownership falls out of fashion for even a generation, there could be dire economic consequences unless renters become diligent savers and prudent investors. If that happened on a grand scale, it would be as momentous a shift in American behavior as abandoning homeownership en masse.”