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Home Topics in Depth Economics Landlords Are Taking Over the U.S. Housing Market

  • Purveyor (2622 posts)
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    Landlords Are Taking Over the U.S. Housing Market

    As Wall Street backs off of buying rental homes, small investors are picking up the slack.

    by Patrick Clark
    February 23, 2017, 5:00 AM EST

    As rising home prices, slow new home construction, and demographic shifts push homeownership rates to 50-year lows, the U.S. is increasingly a country of renters—and landlords.

    Last year, 37 percent of homes sold were acquired by buyers who didn’t live in them, according to tax-assessment data compiled in a new report published by Attom Data Solutions and ClearCapital.com Inc.

    That number may include second homes, or properties acquired by investors who seek to fix up old homes and resell them at a profit. But it’s also a strong indication that landlords are playing a larger role in the U.S. housing market.

    In the years following the foreclosure crisis, Wall Street drove a rise in the share of homes purchased by landlords, as private equity firms bought thousands of cheap homes. In 2012, institutional investors accounted for 7.8 percent of home sales, according to the report.



    glinda, arendt, Abelenkpe and 4 othersem77, jdpriestly, 7wo7rees, Downwinder like this

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  • jdpriestly (5877 posts)
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    1. Banks aren't paying much interest so the idle money of the rich can't

    earn much just sitting in a bank funding the mortgages of the middle class.


    No Truth!  No Trust!  Bernie or Bust!
  • roody (131 posts)
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    2. It is going to hurt when their immigrant renters get deported.

  • ThinkingANew (1430 posts)
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    3. This is a result of the growing wealth gap. A new "gilded age" is in process.

    Ultimately land and buildings are where much of the money will end up as things get increasingly less stable. The rich have so much excess wealth they can keep buying out real estate.

    Each time the stock market tanks more funds build around real estate as well.

    The answer *was* to increase capital gains back to where it was when we had a more available real estate market. Lowering capital gains was a huge factor in what has happened with the wealth gap and also a major factor that moved housing prices so much.

    However,  now that so much wealth is at the top I am not even sure if capital gains will stop the trend at this point.

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