Inflated home prices

[DallasComet]

Originally Posted by Lorne

Backlash Grows as Real Estate Giants Increase SFR Market Share

http://go.pardot.com/e/850243/nts-in...nwp-0HzI8R6gW8

Institutional real estate investors keep buying up the single-family rental (SFR)
market, raising rents and cutting services to increase rental ROI. Congress is paying attention, and they aren’t too pleased. Institutional investors and private equity firms are increasingly blamed for the high-demand, low-inventory US housing market crisis.

Too much profit? Last week, Sen. Sherrod Brown (D-OH), chairman of the US Senate Committee on Banking, Housing, and Urban Affairs, blamed institutional investors and private equity firms for cynically exploiting a “captive” housing market to increase the profit of large stakes they are acquiring in
single-family rentals.

From the horse’s mouth: “Private equity firms, corporate landlords, and investors saw a shortage, and they saw a captive market. They see these [single-family houses] as nothing more than annual return on equity,” Brown said in an opening statement at a committee hearing Thursday entitled
“How Institutional Landlords are Changing the Housing Market.”

Market
manipulation: According to the Hunter Housing Economics consulting firm, investors disbursed $30 billion in debt and equity into the build-to-rent sector in 2021, with nearly 100,000 build-to-rent homes starting construction last year. As a result, investors have been rewarded with the best ROI of all property sectors, with risk-adjusted annual yields of more than 8%, the highest of 18 property sectors tracked by Green
Street.

Good article. This is definitely happening in the southern Dallas suburbs and in SE Dallas along I-20.