Institutional investors may control 40% of U.S. single-family rental homes by 2030, according to MetLife Investment Management. And a group of Washington, D.C., lawmakers believe that Wall Street needs to back away from the market.
The single-family rental industry got its start with government backing in the fallout after the 2008 financial crisis. "It was that rare opportunity that attracted the institutions to build a portfolio out of these foreclosed properties" said Steven Xiao, an assistant professor of finance and managerial economics at the University of Texas at Dallas.
"It's almost a captive market" said Jordan Ash, director of Labor-Jobs and Housing at the Private Equity Stakeholder Project. "They've been very explicit about how people are shut out of the homebuying market and are going to be perpetual renters."
How has the US allowed this to happen? Disgrace of modern times
You got to get rid of this fort dude he sucks
dw the banks will end up becoming the new landlords for those tenants
It will mean rents and home prices will stay artificially high.
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