Quote:
Originally Posted by WSH
How can "corporations" own the majority of homes in just 6 years ?
Most folks now are NOT selling--even if they want to trade up/downsize--because they're in ~3% mortgages. You'd have to be crazy to sell, even at a great price.
Your mortgage rate will double, at least, on a new home purchase
I know a couple of RE agents and they all say the same thing....cant find homes FS in neighborhoods their clients want because buyers can't afford 2X mortgage on their next home
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See article linked below. Whether it gets to 40% or 50% in 6 years nationwide may depend on interest rates.
Institutional house owners are rather opportunistic and calculated, in deciding when to buy. Right now, they have slowed down their buying of existing houses and are instead focusing on build to rent of new houses. Smaller investors and flippers may still be buying existing houses.
What the institutions really want is another housing crash/foreclosure crisis like in 2008-2010. In 2020-2021, private equity raised a huge amount of money (my count at the time was approaching $1 trillion) in anticipation of such a foreclosure wave due to Covid. It didn’t happen, because of all the government and bank programs to prevent foreclosures. Private equity was sorely disappointed, but those funds are still out there, waiting.
That said, institutions do own about 5% of all houses now, and it is more in certain areas that they focus on (e.g. Sunbelt).
https://www.cnbc.com/2023/02/21/how-wall-street-bought-single-family-homes-and-put-them-up-for-rent.html