Lawmakers in Washington are asking whether large institutional investors are costing Americans an honest shot at owning their own home.
The concern in Congress is that private equity firms are buying single family homes across the country, then renting them back to Americans during a massive home deficit. Over the last several years, institutional investors bought 42.8% of homes up for sale in the Atlanta metro area and 38.8% in the Phoenix-Glendale-Scottsdale area.
“There are some developments private equity owns that are exclusively rental homes,” Financial planner Richard Rosso said. “So, this is a trend the government is going to have to get in the way of to make the market more far, or people will just continue to rent.”
Experts point out rents are increasing nationwide. Rent on single-family homes has risen faster than apartments. In response, officials with several firms argue institutional investors still account for a relatively small share of the single-family home rental market.