![]() The transactions have also resulted in a pattern of evictions, rent hikes, poor maintenance, and exploitative fines by property managers whose bottom line is dictated by investor pressure to generate ever-greater returns rather than by tenants' well-being, or even safety. ![]() According to one 2014 study, for example, less than 1 percent of the properties owned by single-family rental giant Invitation Homes, one of the largest private-equity groups in the world, are occupied by tenants with Section 8 vouchers. These transactions have resulted in fewer single-family houses available to prospective owners and fewer single-family rentals available to low-income people. "But what they did was sell them in a way that maximized their bottom line." "Fannie Mae could have sold them in a way that maximized neighborhood revitalization," says Elora Raymond, assistant professor of city and regional planning at Georgia Tech, who wrote a paper showing disproportionate eviction filings by corporate landlords in Atlanta. Smaller buyers, affordable housing developers, and community groups had no chance to compete. In large part, these investors have the federal government to thank for their continued success: In 2012, as the foreclosure crisis continued to ripple through the country's housing markets, the government launched a pilot program selling foreclosed properties from Fannie Mae to investors, in bulk. In Atlanta, as much as 25 percent of monthly home purchases made in 2013 in the city were made by institutional investors. ![]() In Oakland, California, research by a local community organization in October of 2011 found that investors had acquired 42 percent of homes that were foreclosed upon since 2007. But in areas most deeply affected by the foreclosure crisis, the impact has been significant. The footprint of Wall Street-backed firms in the market remains relatively small, on a national scale, with approximately 200,000 out of 14 million single-family rental homes in the country under their domain. metros, the number of single-family rentals increased by 52 percent in the decade following the mortgage crisis, according to research by Dan Immergluck, a professor at Georgia State University-much higher than the 17 percent increase in multifamily rentals (which are significantly less likely to have been converted from foreclosed houses). The market took off: Across the 50 largest U.S. Anticipating the emergence of a vast new population of renters-whose credit scores were crippled by the crisis-these firms quickly converted the homes into rentals, bundled them into securities, and sold off shares to eager investors. ![]() As over nine million families lost their homes to foreclosure, private-equity firms swooped in, grabbing up hundreds of single-family home mortgages for cheap and edging other potential buyers out of the market. The Wall Street practice Warren is targeting-flipping distressed mortgages into rentals-took off with the Recession.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |