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With the current easy money environment is there a way to see proportion of the housing stock being used as rentals? This could be people moving and declining to sell or large corporations. I heard something like 2/5 sales were going to REITs or rent seeking behaviors.
while we wait, what I can say is that "Terms of Sale" (ie cash v financing) is a REQUIRED filed in MLS, thankfully. If it wasn't, then this would be a wildly inaccurate answer (because of Realtors who don't enter more info than they are required to).
It also doesn't include any iBuyers that purchased directly from a Seller, thus not appearing on MLS. A few of those sales did happen - where a home was listed "normally" on MLS and then sold to an iBuyer - Opendoor has ~130 of these.
From the info readily available, over the last 12 months:
Total Triangle MLS sales: 46,479
Of those, Cash: 6,207 (13.5%)
Wake County: 23,040
Cash: 2,878 (12.5%)
Durham County: 5,746
Cash: 816 (14.2%)
Orange County: 1,927
Cash: 392 (20.3%)
Johnston: 5,984
Cash: 654 (10.9%)
All others: 9,782
Cash: 1,467 (15%)
Of possible interest - I was unaware that more homes were sold in JoCo then Durham Co over that period, making it the 2nd largest county for sales in TMLS.
“You now have permanent capital competing with a young couple trying to buy a house,” said John Burns, whose eponymous real estate consulting firm estimates that in many of the nation’s top markets, roughly one in every five houses sold is bought by someone who never moves in. “That’s going to make U.S. housing permanently more expensive,” he said.
The consulting firm found Houston to be a favorite haunt of investors who have lately accounted for 24% of home purchases there. Investors’ slice of the housing market grows—as it does in other boomtowns, such as Miami, Phoenix and Las Vegas—among properties priced below $300,000 and in decent school districts.
I don't understand how buying a SFR in this market, with the intent to rent, makes sense. Rents won't cover the maintenance plus financing/insurance/taxes. Extreme bear or extreme bull markets are risky phases to build a rental portfolio.
I suppose we simply have a fresh crop of newbie "we buy houses" outfits that don't remember 2008.
I don't understand how buying a SFR in this market, with the intent to rent, makes sense. Rents won't cover the maintenance plus financing/insurance/taxes. Extreme bear or extreme bull markets are risky phases to build a rental portfolio.
I suppose we simply have a fresh crop of newbie "we buy houses" outfits that don't remember 2008.
I do not want to be a landlord anymore especially here as I am not yet 100% sure if I want to be here looooong term. However, once in a while I play with numbers and it is still possible to have good deals here, especially in Durham (just stay away from hot areas like DT). When Covid hit, and the market kind of stalled for a bit (just when there was a huge uncertainty in the beginning), I was tempted to grab a couple of town-homes. I ran pretty conservative numbers and they did make sense. The cash flow was pretty decent, and I am pretty sure appreciation would be even better. But, at that time just like everyone else, it didn't make sense to get into rentals. Things were pretty uncertain and it felt like cash was king. Now? I do not know. I do not want to get into bidding wars. But, I think there will be a ton of growth here. I'll probably regret at some point not grabbing something while borrowing is cheap.
Invitation Homes is one of the players here in NC. They purchased quite a bit in 2018 but it looks like it has slowed down a bit in this area. American Homes also bought a lot especially back in 2013.
Invitation Homes also decided to develop an entirely single family housing rental subdivision in Charlotte.
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