More and more rental homes in the surrounding Puget Sound are becoming owned and managed by big investors and hedge fund companies; could this be a step in the right direction towards home-ownership for renters? According to the Seattle Times, a National study suggests yes! A study by Wall Street Analysts suggested that somewhere between $7 billion and $9 billion dollars in distressed family homes have been purchased over the past 5 years, and turned into rental homes by these big name investors. Unlike your average ‘mom and pop’ rental investor, these guys are buying dozens and on occasion hundreds of properties at a time through short sales, foreclosures, etc.
Although single family rental homes have always been a part of the rental scene, the involvement of these large scale companies is really allowing the category to take off. According to a different study, single family homes account for 52% of all rental units in the country; 27% of all renters nationwide. The study also suggests that the boom in rental homes isn’t just a good opportunity for first time home buyers, but also those affected by the bust. About 60% of rental home tenants have expressed interest in buying in the next 5 years, compared with 44% of apartment and multifamily building renters. The study’s synopsis showed that single family rental homes are going to continue to be a growing part of the housing market, and a safe bet for future home buyers. For more information on the study, visit the Seattle Times.