The percentage of homes in the US purchased by investors is rising sharply. It’s now nearly 1 in 4.
The average homebuyer is having a harder & harder time competing, especially as this influx of institutional capital continues to drive up prices.
Is America in danger of becoming a nation of renters, leasing their homes from hedge fund landlords?
I recently tweeted out a chart from CoreLogic, showing how a rising percentage of single family homes are being purchased by investors. The chart really hit a nerve and my tweet went viral, performing 100x more than usual.
I think it sparked so much attention because it caused folks to ask: is the individual homeowner becoming squeezed out of the housing market?
Housing prices have risen to all-time highs this year while affordability has declined dramatically.
Are we on our way to becoming a nation of renters, leasing from the wealthy investor class who will eventually own ALL of the houses?
To address this, I’m excited to welcome Ivy Zelman to the program. Ivy is CEO of Zelman & Associates, the leading housing research firm in the US.
While Ivy notes the increase in institutional capital into the Single Family Home (SFH) market is driving prices higher and may lead to greater future price volatility, she doesn’t expect that corporations will takeover the nation’s housing inventory. To learn why, watch the interview.
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