+

Cookies on the Business Insider India website

Business Insider India has updated its Privacy and Cookie policy. We use cookies to ensure that we give you the better experience on our website. If you continue without changing your settings, we\'ll assume that you are happy to receive all cookies on the Business Insider India website. However, you can change your cookie setting at any time by clicking on our Cookie Policy at any time. You can also see our Privacy Policy.

Close
HomeQuizzoneWhatsappShare Flash Reads
 

Five Jaw-Dropping Stats That Show How Wall Street Is Scooping Up Tons Of Single Family Homes In America

Apr 22, 2013, 19:59 IST

flickr: codepinkhqWall Street investment firms are feverishly grabbing single-family homes, the Washington Post reports.

Advertisement

Wall Street's been buzzing about this trade for a while.

Institutional investors are taking advantage of cheap inventory, combined with our low interest rate environment, to make double digit returns from renting or re-selling homes. As a result, markets in some places are recovering rapidly — Phoenix, for example, has seen single-family home prices rise 23% in the past year.

There are questions as to whether this situation is good for the average consumer. If prices rise while jobless rates remain high, it could take longer for the "end-user" of a property to raise the cash to afford a home.

From WaPo:

Advertisement

“Clearly the investors are moving markets in some places,” said Dean Baker, co-director of the Center for Economic and Policy Research and author of a popular housing blog. “In some markets at the bottom end, you are looking at 30 or 40 percent gains year to year. That is frightening to me. At some point the music stops. The investors if they get hurt, that is their problem. But invariably a lot of other people will get caught up in that.”

How big is this? Here are a few numbers to give you an idea of how dominant institutional investors are in this space.

Lets see how this all shakes out.

You are subscribed to notifications!
Looks like you've blocked notifications!
Next Article