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Gordonb0mbay t1_izye887 wrote

Reply to comment by ProfBU in I’m Cornelius Hurley, academic, lawyer, 14-year director of a Federal Home Loan Bank. Ask me anything about the FHLBs. by ProfBU

Isn’t the mass buying of homes the real disruptive force to the market? We aren’t talking about widgets here

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ColTigh t1_izyhfnk wrote

Absolutely it is. But your speech isn’t as important as other “people’s” speech ($$$).

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notimeforniceties t1_izziwmm wrote

No, it's been overstated.

The two largest companies, Invitation and Starwood merged to form the largest institutional owner of single family homes, and they have a total of 80,000 units nationwide (out of many millions total of course).

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SupraMario t1_j009sei wrote

Uhh it's really not, black rock alone owns around 60k homes. Those are just the big players. There are a ton of smaller shops out there owning a few k. It all adds up really quick.

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notimeforniceties t1_j00bj5l wrote

60k is nothing on the scale of the country.

> Institutional owners still comprise a relatively small portion of the overall market, about 350,000 units, or 1.5% of the existing 23 million single-family home rental units, according to the National Rental Home Council. But in certain target markets, the concentrations are much higher.

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SupraMario t1_j00clfw wrote

In areas where they matter that's a ton of homes. This also doesn't include owners that own 10-20 homes either. One of the issues we have is so many of the single family homes are owned by someone else and being rented out.

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notimeforniceties t1_j00dc3x wrote

yes most single family rental homes are owned by "mom and pop" landlords, and that's generally not seen as a problem.

if you want actual stats:

> According to data from the 2018 Rental Housing Finance Survey, for example, individual investors owned approximately 73 percent of single-unit rentals in 2018, compared to 23 percent of apartment homes in smaller properties (5 to 49 units) and just 7 percent of apartment homes in properties with 50 or more units. In that same vein, a recent Altus Group study estimated that institutional investors (firms with portfolios of over 2,000 properties), despite controlling over half (50 to 55 percent) of all U.S. apartment units, owned between just 2.1 percent and 2.5 percent of all single-family rentals.

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SupraMario t1_j00enrv wrote

People may not look at it as an issue, but the amount of 2nd homes people bought during this boom was a huge number. It's definitely an issue, just everyone wants to just point fingers at the big companies, but it's the market over all.

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hillsfar t1_izzioss wrote

Also the mass increase in populational demand. Both.

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SupraMario t1_j00a08q wrote

https://www.cbo.gov/publication/57975

What? Population of modernized societies usually decreases, we're on a downward slope now.

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hillsfar t1_j00r35u wrote

Usually. Although we likely let slip in about 4 million in just the last 2 years, slo g with over a million or so legally. This grows the population and thus housing demand.

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