Investors Exacerbate Affordability Issues in Hot Housing Markets
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Institutional investors like Blackstone and Invitation Homes own less than 5% of single-family rentals nationally, but over 20% in hot markets like Atlanta. Their buying power drives up costs.
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Investors concentrate in specific zip codes, exacerbating affordability issues locally. In Atlanta, they own over 10% of homes in certain neighborhoods.
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The housing shortage predates Wall Street's involvement. Restrictive zoning laws and regulations make building new homes difficult and expensive.
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Population growth continues to drive demand, especially in Sunbelt metros like Atlanta. Investors target these high-growth areas.
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It's a "confluence of factors" causing unaffordability. Institutional ownership plays a role but issues like income-to-price ratio disparity and insufficient building are also to blame.