Feb. 16, 2022
Last year, investors bought nearly one in seven homes sold in America’s top metropolitan areas, the most in at least two decades, according to the realty company Redfin.
Those purchases come at a time when would-be buyers across the country are seeing wildly escalating prices, raising the question of what impact investors are having on prices for everyone else. Investors were even more aggressive in the final three months of the year, buying 15 percent of all homes that sold in the 40 markets.
Real estate investors can be large corporations, local companies or wealthy individuals, and they generally don’t live in the properties they are buying. Some look to flip homes to new buyers, while others rent them out.
The growing number of investor purchases has drawn increasing scrutiny from Democratic lawmakers on Capitol Hill, particularly as buyers target minority neighborhoods.
“One of the reasons housing prices have gotten so out of control, is that corporate America sensed an opportunity,” said Sen. Sherrod Brown (D-Ohio) last week at a hearing of the Senate Committee on Banking, Housing and Urban Affairs, a panel he chairs.
Brown took direct aim at private equity firms and corporate landlords in particular.
“They bought up properties, they raised rents, they cut services, they priced out family home buyers, and they forced renters out of their homes,” he said.
https://www.washingtonpost.com/busin...ket-investors/
SOMETHING has to be done about housing prices. Whether buying or renting. Great if youre the seller.
My little brother sold his townhome for more that it was worth to someone in NY who never saw it. I imagine its rental now. As someone who lives in a townhouse neighborhood, home owners are so much better than renters.
Old brother, conversely, bought a beach house in Delaware without seeing it. Just swooped in with DC metro money and bought it. hes not renting, just a nice beach house 3 hours away but imagine an older couple maybe looking to retire or young family looking to stay in Bethany Beach but they cant compete with rich people from DC throwing stupid money aorund.
Foreign investors and foreign companies .. should be limited in how much of the US they can buy. We are free market capitalists but dang.
I dont even want to know how much square footage of the US actually is owned by China govt or "people"