"The mortgage is not what makes the walls stand up. This picture started to change during the 2008 financial crisis, when an unexpected buyer emerged for foreclosed properties: the corporate landlord."
"In the eyes of many aspiring homeowners, these 'Wall Street' landlords were villains who had the upper hand in every bidding war. For people looking to rent, however, the business opened up neighborhoods that had largely been accessible only with a down payment and a mortgage."
"Lately, however, they have coalesced around a model that can deliver single-family rental properties at scale: building new rental homes from scratch. These 'build to rent' communities now account for nearly 10 percent of the country's new single-family homes."
"But the major housing legislation now being considered by Congress may effectively eliminate both of these approaches, discouraging corporations not just from buying single-family homes to rent but also from building them."
Suburban housing has traditionally favored single-family homes, with a high rate of owner-occupancy. The 2008 financial crisis introduced corporate landlords, who began purchasing foreclosed properties, thus expanding rental opportunities in previously inaccessible neighborhoods. Although these landlords currently own a small fraction of single-family homes, their influence is growing through new 'build to rent' communities. However, proposed housing legislation may hinder both the acquisition of existing homes and the construction of new rental properties by corporations.
Read at The Atlantic
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