Wall Street Firms Are Buying up Single-Family Homes | Beaufort County Now | American investment banks are purchasing single-family homes in an effort to profit upon skyrocketing rent and property values.

Coronavirus Disease 2019 (COVID-19)
Publisher's Note: This post appears here courtesy of the The Daily Wire. The author of this post is Ben Zeisloft.

    American investment banks are purchasing single-family homes in an effort to profit upon skyrocketing rent and property values.

    As The Daily Wire previously reported, CoreLogic's Single-Family Rent Index from April showed a "national rent increase of 5.3% year over year, up from a 2.4% year-over-year increase in April 2020." The group noticed that "as demand for more space and outdoor amenities remains, detached rentals, in particular, are experiencing accelerated growth with a 7.9% year-over-year increase in April, compared to growth of 2.2% annually for attached rentals."

    A more recent report from the National Association of Realtors explained that average American home prices in June 2021 reached $363,300 — a 23.4% increase over the average of $294,400 in June 2020.

    As CNN Business writer Hanna Ziady summarized, rapidly rising rent and property values are drawing Wall Street investment banks to the housing market:

  • According to John Burns Real Estate Consulting, in the first three months of this year, nearly a quarter of all homes sold in the United States were going to investors. That's a broad umbrella that covers everything from mega institutions to individuals buying vacation homes, but BlackRock, JPMorgan Chase and Goldman Sachs were among the big-name buyers.
  • Institutional investors still own only about 2% of all single-family rentals in the United States, or roughly 300,000 homes, according to John Burns research director Rick Palacios.

    The same trend is occurring in England, where American companies are likewise purchasing residential real estate:

  • Institutions poured a record £3.7 billion ($5 billion) into the UK build-to-rent sector in 2020, almost a third of which came from first-time investors, according to real estate consultants Knight Frank. This year's number is likely to come in even higher, with inflows in the first three months of the year alone reaching almost £1.3 billion ($1.8 billion) — a 16% increase on the same period last year.
  • One of the institutional investors actively seeking single-family housing opportunities is Goldman Sachs, which earlier this year bought 900 single-family houses in the northwest of England, and is now partnering with developers to build more homes.

    Mortgage-backed securities currently represent $40 billion of the Federal Reserve's $120 billion monthly asset purchases, which are meant to stimulate economic activity following COVID-19 and the lockdown-induced recession. Likewise, the central bank's near-zero target for the federal funds rate — the interest rate at which private banks can borrow from one another overnight — causes other interest rates in the economy to drop, including those for mortgages.

    As lawmakers pointed out to Fed Chair Jerome Powell at a recent hearing, the central bank's monetary policies decrease the cost for investors and homebuyers to purchase real estate, leading to higher prices.

    Last week, China — which now encourages couples to have up to three children — announced regulations upon its real estate sector to promote affordability for young families. Chinese President Xi Jinping believes that "housing is for living in and not for speculation."
Go Back


Latest Op-Ed & Politics

Virginia’s Democrat candidate for governor, Terry McAuliffe, has conceded the race to the victor, Republican Glenn Youngkin.
White House Principal Deputy Press Secretary Karine Jean-Pierre said on Thursday that President Joe Biden was “perfectly comfortable” with giving payouts to illegal aliens who were separated at the border from their families under the prior administration.
Incidents of academics being targeted for their views are on the rise, according to a new report by the Foundation for Individual Rights in Education (FIRE).
Russia working to protect themselves and possibly destroy
Voters in Robbinsville, a tiny town in North Carolina’s last dry county, have approved the sale of beer and wine, according to unofficial results Tuesday.
The White House was forced to intervene Friday and walk back claims President Joe Biden made during a town hall event on Thursday night, admitting that the administration is “not pursuing” using the National Guard to solve the supply chain crisis
Let's be frank ... a lot of us have been leery of Facebook and its cabal of programmers, administrators, promoters, fact-checkers, and even its creator, and many have even walked away from the liberal platform.


We will offer this allotment of three with more to come; some old, most new, but all quite informative, and, moreover, necessary to understanding that in North Carolina, there is a wiser path to govern ourselves and our People.
In a previous research brief, I wrote about how existing nuclear power plants produce “zero emissions while at the same time being the most reliable and lowest-cost source of electricity.”
We have reached a critical juncture in our nation’s history. As once hallowed institutions decay before our eyes, parallel structures struggle to arise.
On Tuesday, November 2, The N.C. House voted along party lines in favor of its new House election district map, while the N.C. Senate approved new congressional maps.
No longer the "friendly opposition", the Liberal "ying" to the more studious, more insightful "yang"; no, not the least bit worthy of such.


Back to Top