Rental Investors Flood Market
Although most houses on the market are purchased by individuals, rental investors are quickly flooding the market. Over 25 percent of newly built homes were purchased by rental investors in Q4.
According to The Real Deal, cash-rich investors see potential in single-family rentals, especially as mortgage rates rise, while builders benefit from selling to investors in bulk, turning a profit more quickly. “Single-family rental is likely to continue to show some strength,” said Robert Dietz, chief economist at the National Association of Home Builders.
