One Block, Five Flips: How House Flipping is Transforming Neighborhoods Like South Jamaica

"An increasing number of family homes in the outer boroughs are sold within two years of being bought-at huge markups. As New York City's housing market continues to tighten, some lawmakers say the tactics are predatory, targeting neighborhoods with Black homeowners."

"The transaction is a textbook example of a "flip": a practice that researchers say is growing more prevalent in New York City, where investors buy homes below market price and resell them within one or two years for massive markup. Some flips are above board, taking homes that need work, fixing them up and reselling them. But in some cases, advocates say, home flippers use predatory practices, harass homeowners, and lowball vulnerable residents in order to maximize profits."

"But less than a year before the Wright family purchased it for $700,000, a company called "The Jamaica Partners 132 LLC" bought the home for $285,000. Some listing sites estimate the Wright home is now worth close to $1 million."

"Real estate investors say they are simply following the market, renovating homes that need repairs, and responding to demand for housing. But prospective homebuyers say it pushes longtime residents out and puts homeownership out of reach for families who can't compete with investors making all-cash offers."

Family homes in New York City’s outer boroughs are increasingly sold within two years of purchase at large markups. Some investors buy properties below market value and resell them quickly, a practice described as “flipping.” Some flips involve legitimate renovations of homes that need work, but advocates and researchers say other cases involve predatory behavior, including harassment and lowballing vulnerable residents to maximize profits. Lawmakers express concern that flippers target neighborhoods with Black homeownership as the city’s housing market tightens and prices rise. Homeowners may benefit from higher property values, while prospective buyers argue that investor competition and all-cash offers push longtime residents out and make homeownership harder for families.

Read at City Limits