The Rentals Are Just Growing
Is it just my imagination or did the huge companies that gobbled up all the single family foreclosures and turned them into rentals have not sold very many?
Sure seems like that to me.
Remember the vast number of all cash offers?
Where are all these mystery houses? The buyers bundled them and turned them into bonds for investors.
What is a poor small time owner to do?
Just Saw This Interesting Article In My Favorite Newsletter, “The Kiplinger Letter.”
Look for more of America’s single-family homes to be rented, not owned, in the years to come. The number of households that rent is growing faster than those than own. And the growth isn’t coming just in apartments. Today, 13% of Americans live in rented single-family homes, up from 9% before the housing bust. Large investors who bought such homes to rent during the crash now want to expand into markets outside the hard-hit Sun Belt states, where they scooped up foreclosures.
The trend presents new opportunities for bond investors. Large landlords such as private equity funds will be issuing more bonds backed by rental payments in order to finance expansion plans. Also expect more real estate investment trusts as landlords spin off their portfolios of single-family rental homes into new REITs.