Property Investors Turned Landlords Help Stabilize Housing Market

Monday, 25 Mar 2013 03:26 PM

By Lisa Barron

  Comment  |
   Contact  |
  Print   |
    A   A  
  Copy Shortlink
The latest recovery in the U.S. housing market is being spurred not by your average homeowner looking for a bargain, but real estate investors scooping up cheap homes and renting them out, according to The Wall Street Journal.

That role is significantly different from the one played by speculators who helped fuel the housing bubble of the last decade, the Journal reported, noting that today’s investors have set off a chain reaction that has helped stabilize prices.

“They warmed up the market, and it brought buyers back,” Lanny Baker, chief executive of the real-estate brokerage firm ZipRealty, told the newspaper.

Citing National Association of Realtors figures, the Journal said that cash buyers, mainly investors, now make up about 32 percent of sales nationwide, with Southern California and Phoenix, Ariz., among the most popular target markets.

Buyers have included individual and startup investors as well as big Wall Street players and private equity firms. Over the past year, firms such as Blackstone Group and Colony Capital have spent billions of dollars buying up single-family homes, according to the Journal.

“It’s a very attractive time to buy a home if you can,” Justin Chang, president of Colony American Homes, told the newspaper, adding that is has created a “big opportunity to rent homes to people who, for whatever reason, have chosen not to buy or can’t buy.”

Indeed, the rental market is booming in the wake of the housing crash, which turned the American dream of home ownership into a nightmare for many who lost their homes to foreclosure.

“There had to be a shift toward renting single-family units that owners could no longer afford,” Christopher Thornberg of Beacon Economics told the Journal. “Investors played a critical role in that transformation.”

© 2014 Newsmax. All rights reserved.

  Comment  |
   Contact  |
  Print   |
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Muhammad Ali Hospitalized With Pneumonia

Saturday, 20 Dec 2014 23:27 PM

Boxing great Muhammad Ali was hospitalized with a mild case of pneumonia that was caught early and should result in a sh . . .

Chicago Mayor's Teenage Son Mugged near Home

Saturday, 20 Dec 2014 22:32 PM

A spokeswoman for Chicago Mayor Rahm Emanuel says the mayor's 17-year-old son was mugged near the family's home.Spokeswo . . .

Protesters Shut Down Part of Mall of America in Minnesota

Saturday, 20 Dec 2014 22:25 PM

More than 1,500 protesters against police violence shut down part of the Mall of America in Minnesota on Saturday, resul . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved