Cash investor v. the first time homebuyer...when will it become equal?
It all depends.
By 2017, two major players, Invitation Homes and American Homes 4 Rent, controlled nearly 60% of the rsingle family ental housing market. As of 2018, Invitation Homes (majority controlled by the Blackstone Group - investment group) appears to be the largest single-family rental housing owner. after recent mergers (Invitation Homes Inc. and Starwood Waypoint Homes completed their $11 billion merger, creating the largest single-family rental landlord in the U.S.) with 82,000 properties. Its next largest competitor American Homes 4 Rent (As of December 31, 2020, the company) owned 53,584, homes. American Homes 4 Rent is a real estate investment trust based in Calabasas, California that invests in single-family rental homes. Cerberus created FirstKey Homes (owns more than 20,000 homes); and GI Partners owns over 15,000 multifamily & single family residential real estate units. Update: 8-29-2021 - Home Partners owns 17,000 homes nationwide.
On calls with investors, those two companies touted their cost-cutting measures, which often involved pushing responsibilities onto tenants. In 2016, Jack Corrigan, the chief operating officer of American Homes 4 Rent, told investors that the company hoped to reduce spending on repairs, maintenance, and “turn costs”
Interesting side notes: NMHC 50 Largest Apartment Owners own approximately 2.3 million housing units and most are hedge funds.
Sources: Various internet searches, including but not limited to:
Update 5-31-2021: Fast-cash house flippers flood poor neighborhoods in U.S.
update: Blackstone to buy Home Partners of America in $6 bln deal (17,000 homes)
8-7-221: Why do companies want to buy your house?
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