During the foreclosure crisis, investors transformed the single-family home rental market into a formally managed asset class. Now they want new homes.
During the foreclosure crisis nearly a decade ago, investors plowed into the housing market, buying millions of distressed homes and turning some of them into lucrative rentals. Now they have a new strategy: Buy new.
They transformed the once mom-and-pop market of single-family rentals into a large-scale, formally managed asset class — and it is still growing, in fact faster than ever. "There is a consumer rental demand that is driving these institutions to want much greater levels of inventory of this product," said Gerald Ellenburg, CEO of ERC Homebuilders. "They are learning or have learned that new inventory is a much safer and more official rental product."
In 2017, 37,000 homes were built as rentals, according to the National Association of Home Builders. That grew to 43,000 last year, or just under 5% of total single-family housing starts. But that is just homes built and held by builders for rent and doesn't include those sold directly to investors, so the numbers are likely larger and growing more quickly.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Leonardo DiCaprio Takes It in the Face During Beach VolleyballLeo DiCaprio's willing to take one for the team when it comes to volleyball. Face splats included.
Read more »
Zendaya Got Asked on a Date By a Man During an 'Euphoria' Panel Q&AZendaya Tactfully Responded to a Man Who Asked Her on Date During an Euphoria Panel Q&A
Read more »
https://people.com/Get the latest news about celebrities, royals, music, TV, and real people. Find exclusive content, including photos and videos, on PEOPLE.com.
Read more »
Cardi B Gave Offset A Lap Dance During The BET Awards—Talk About PDAMaybe more than we needed to see.
Read more »
https://people.com/Get the latest news about celebrities, royals, music, TV, and real people. Find exclusive content, including photos and videos, on PEOPLE.com.
Read more »
Here Are 10 Great Games You Can Get Dirt Cheap During The Steam Summer Sale (2019)Here are ten great PC games you can get dirt cheap during the 2019 Steam Summer Sale.
Read more »