Wall Street has purchased hundreds of thousands of single-family homes since the Great Recession. Here's what that means for rental prices
Publishing timestamp: 2023-02-22 12:12:01
Summary
Private equity groups such as Blackstone and Pretium Partners have bought tens of thousands of homes across the US Sun Belt, leading to faster price increases than the national average. Analysts suggest that institutional investors could control 40% of US single-family rental homes by 2030. A group of Washington, DC lawmakers have called for Wall Street to back away from the market. The single-family rental industry got its start with government backing after the 2008 financial crisis. Companies such as Blackstone and Pretium Partners have been buying up homes and creating built-for-rent communities. Rents for two-bed detached homes have increased significantly in some Sun Belt states, but industry advocates argue that they do not control enough market share to dictate prices. Blackstone's chief operating officer has said that some companies may retreat from the real estate market in the short term.
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