Mortgage Industry News
« Return to Mortgage Industry News
Wall Street's Investment into Housing has Unintended Consequences
Wednesday, March 11, 2020
Unless you were involved in the housing industry or
suffered the loss of your home, you probably didn't notice or have by now
forgotten one of the most lasting effects of the Great Recession. As home
prices plummeted and an estimated six million homes were lost to foreclosure or
short sales, there was a massive influx of institutional investors into the
rental market. According to Ian Formigle Chief
Investment Officer of CrowdStreet, almost 83 percent of single-family rental residences
were owned by individual, so-called mom and pop, investors in 2001, By 2015
that had dropped to about 75 percent as Wall Street firms gobbled up, per Zillow,
5.4 million single family homes between 2006 and 2017. This, by the way, was
approximately the same time when the national homeownership rate declined from
69 percent to around 63 percent.
Read Full Article