a big cause of homelesness

[ImStillMags Mags]

> The number of affordable homes built since 1970 has dropped 75%. (More)

[plainolamerican]

The number of affordable homes built since 1970 has dropped 75%.

---

By design.

AI Overview

US corporations, particularly institutional investors and private equity firms, have been buying homes, primarily single-family residences

, with the share of investor purchases reaching nearly one-third of all U.S. home sales in some recent reports. This trend contributes to challenges for individual homebuyers due to competition and bidding wars, though large institutional investors are a smaller fraction of all investors compared to individual "mom-and-pop" landlords. 

What corporations are buying homes?

• Institutional investors: Large companies, often backed by private equity firms, have purchased tens of thousands of homes, especially in Sun Belt states and other high-growth suburbs.
• "Mom-and-pop" investors: The majority of investors are smaller, individual landlords who own a handful of properties. In some analyses, they account for the vast majority of investor-owned homes. 

How are corporations buying homes?

• All-cash offers: Corporate buyers can use their financial might to make all-cash offers, outbidding individual buyers.
• Technology: New technology has made it easier for companies to manage a geographically dispersed portfolio of rental properties.
• Built-for-rent communities: Some companies are building new single-family homes specifically for the rental market. 

What are the impacts?

• Competition for buyers: Corporate purchases can lead to bidding wars, making it more difficult for individuals and families to purchase homes.
• Higher prices: The practice can drive up home prices by creating artificial scarcity.
• Eviction practices: Concerns have been raised about eviction practices by corporate landlords.
• Reduced homeownership: The trend has created challenges for individual homeownership and may be exacerbating the racial wealth gap.
• Increased rental supply: In some cases, corporate investment has added to the supply of rental housing.