Institutional Investors Own How Many Homes

Real Estate News TV

Institutional investor in its own. How many homes? Well, that’s a good question. And we’re going to discuss it right now to figure out exactly what that number is and who is nervous about it. Exactly. And why are they nervous? So let’s talk about this. We live in a free market society and we’re all about capitalism. And there’s ways to make money and there’s good investments and bad investments.

And all of a sudden, we have institutional investors that are investing in residential real estate, which previously, for the most part, had been where individuals would buy their own homes. And now we have this whole group of people that are buying homes in bulk because they feel they’re good investments.

Well, I guess that should make you very happy, because if large, wealthy, well thought out investments are going into the same thing, that is our industry, then it’s surely a good long term investment, right?

So that’s going on now. So flatter yourself because that is happening and let’s take a look at how many of their they actually have. So Inman is reporting to us that Congress targets investors and asks, where of all the homes gone at 280,000 is a number that are single family homes that are owned to be rented. So I believe this is the number of total homes in the city of Chicago. So if we were to think about it, there’s a lot of states in the union, there’s a lot of cities within each state.

And in particular, Chicago is a large city and there are 280,000 homes, all owned by institutional investors. So is it a huge amount? I don’t really think it’s a big amount compared to the all of the homes in the country. And people are looking for legislation to limit the amount of these that goes on. So why is it a problem? Well, because when you have a a market in which normally it’s one person owns one home.

Right. And now all of a sudden you have somebody that owns a bunch of them, then they could manipulate the market possibly. But I don’t know that they can become market makers and do certain things without, you know, without it really actually making financial sense. It is possible if they have a ton of homes in concentrated areas, that would be an issue.

So overall, I don’t have a problem with the total number across the whole country. Right. I think it’s almost irrelevant. But if they are highly concentrated in precise areas and they own, you know, 5% of the homes in a particular subdivision or 20% in a whole city or something like that, like just like an absurd amount.

Then they could start to control what’s going on there. But I don’t think that this number approaches anyone of those. But we do have to watch out for it looking forward, because that could become an issue if more of this becomes proliferated. And all of a sudden, if this number goes up by ten times or 100 times the number, then we could be looking at a situation where we have some type of imbalance within what’s going on. So, you know, that’s that a lot of homes owned and now we know exactly how many.

We do have a link directly to the article and we can kind of talk through how big of an issue it is. I personally I’m thinking it’s not a huge issue unless the concentration, like I said. So that’s about that. I think we have bigger fish to fry than that one specifically. And I think we kind of understand that real estate is a good investment. So there you go. I’ve covered.

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