tl;dr
Large corporate entities are quietly buying homes in residential neighborhoods across the US, converting them into rental properties. The Tampa Bay Times reports that in Tampa Bay, Florida, companies have purchased around 27,000 homes under a web of LLCs, with 70% linked to Wall Street investors and...
Large Corporations Quietly Buying Residential Properties in Tampa Bay, Florida Large corporate entities are quietly buying homes in residential neighborhoods across the US, converting them into rental properties. The Tampa Bay Times reports that in Tampa Bay, Florida, companies have purchased around 27,000 homes under a web of LLCs, with 70% linked to Wall Street investors and private equity firms. This trend is also observed in other US markets, driving up home prices and reducing supply. Residents are bombarded with cash offers from companies, leading to concerns about the unavailability and high cost of housing. A recent Reuters poll found that US voters rank housing scarcity and cost as their second most pressing economic concern.
The Tampa Bay Times is tracking a surge in companies increasingly “taking over” neighborhoods by making direct cash offers to homeowners in Tampa Bay, Florida. Once a sale is made, the home is converted to a single-family rental property by an entity that operates through a web of nondescript LLCs, making it tough to trace true ownership. According to the Tampa Bay Times, large companies have now purchased roughly 27,000 homes across three counties in the region under a web of LLCs, and 70% of the properties are linked to Wall Street-backed investors and private equity firms.
The phenomenon is not isolated, with a rise in institutional home ownership reported in markets across the US, particularly strong in high-growth areas like Atlanta, Nashville, and various parts of Texas. The land grabs are notorious for driving up home prices and lowering supply.
Tamika Morris, a local of St. Petersburg, says she gets piles of junk mail and endless phone calls from companies with names like “HomeInc” and “HomeVestors” who offer to buy her home with cash. The person on the phone usually doesn’t say which company they’re calling from, but often asks Morris to name her price. Says Morris, “I am very thankful that I don’t have to look for a home at these prices right now. I don’t know how anybody can make it… There’s no amount of money for me to be able to give up land… Land is important in the history of our family. Having something to call our own is important.”
A recent Reuters poll found that US voters rated the scarcity and cost of housing as their second most pressing economic issue, following fears of stagnant income and rising prices.
More about Cboe Global Markets Inc
Cboe Global Markets Inc Summary
Cboe Global Markets is an American company that owns the Chicago Board Options Exchange and the stock exchange operator BATS Global Markets.
Industry: FINANCE, SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES
Stock Code: 21012601000
Current Price: $27.78
Day's Range: $2.20 - $7.23
52-Week Range: $36.07
Market Cap: $0.202B
Volume: 3,808,700,000
EPS: $199.08
P/E Ratio: -0.153
Dividend Yield: 0.073
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More about IRSA Inversiones Y Representaciones
IRSA Inversiones Y Representaciones,IRSA Inversiones y Representaciones Sociedad Anima is dedicated to diversified real estate activity in Argentina.
Industry: REAL ESTATE & CONSTRUCTION
Sector: LAND SUBDIVIDERS & DEVELOPERS (NO CEMETERIES)
NAICS: 942290000
Dividend Yield: None
Price: 88.47
Change: -2.28
Market Cap: 1607.04
EPS: -1.37
Volume: 119723999000
P/E Ratio: 10.5
Beta: -0.45
Volatility: -0.067