The thread about rental house parties reminded me to post this article. Discussion about it on another board prompted me to look up rentals in my area, and was surprised to see how many of those ordinary 3-bedroom rentals are owned by investors and corporations, both in and out of state.
https://www.wsj.com/articles/if-you-sell-a-house-these-days-the-buyer-might-be-a-pension-fund-11617544801
https://www.wsj.com/articles/if-you-sell-a-house-these-days-the-buyer-might-be-a-pension-fund-11617544801
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If You Sell a House These Days, the Buyer Might Be a Pension Fund
Yield-chasing investors are snapping up single-family homes, competing with ordinary Americans and driving up prices
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The Amber Pines at Fosters Ridge subdivision in Conroe, Texas, was sold to online property-investing firm Fundrise in December.
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D.R. Horton Inc. DHI -3.13% built 124 houses in Conroe, Texas, rented them out and then put the whole community, Amber Pines at Fosters Ridge, on the block. A Who's Who of investors and home-rental firms flocked to the December sale. The winning $32 million bid came from an online property-investing platform, Fundrise LLC, which manages more than $1 billion on behalf of about 150,000 individuals.
The country's most prolific home builder booked roughly twice what it typically makes selling houses to the middle classan encouraging debut in the business of selling entire neighborhoods to investors.
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The consulting firm found Houston to be a favorite haunt of investors who have lately accounted for 24% of home purchases there. Investors' slice of the housing market growsas it does in other boomtowns, such as Miami, Phoenix and Las Vegasamong properties priced below $300,000 and in decent school districts.
"Limited housing supply, low rates, a global reach for yield, and what we're calling the institutionalization of real-estate investors has set the stage for another speculative investor-driven home price bubble," the firm concluded.