Blackrock has STOPPED BUYING HOMES (2023 Firesale Coming?)
Wall Street Homebuyers like Blackrock, Invitation Homes, & Opendoor have stopped buying houses. Which is great news for regular homebuyers in the 2023 Housing Market.
Reventure App Link: https://www.beta.reventure.app/dashboard
Fortune Article on Wall Street Home Buying: https://fortune.com/2023/05/05/institutional-homebuyers-pullback-from-the-housing-market-invitation-homes/
The decline in Wall Street buying will hit housing markets like Jacksonville, Atlanta, Phoenix, and Miami hardest, which are the cities where investors bought the most homes in 2022 according to data from Redfin.
Big corporate landlords are purchasing fewer homes for three main reasons:
1) Increasing Evictions / Higher Vacancy Rates
2) Lower Rent Growth
3) Higher Interest Rates
Higher interest rates have resulted in the cost of capital for Wall Street Buyers like Blackrock surging north of 6%. While the Cap Rate, or investor profit from a rental, is only 4.6% on average. Meaning that big investors are losing money of their investment properties after they pay their lender (which is typically a bank).
But despite this drop in Wall Street buying, it is still difficult for a regular homebuyer in purchase a house. And that’s because stubborn sellers in the US Housing Market are refusing to list their houses, or when they do list, pricing way too high. Such is the case south of Nashville where sellers are listing 20% above Zillow’s market value estimate despite a huge surge in inventory in the area.
Another reason Wall Street Buyers are abandoning the Housing Market is the declining rental market. Asking rents have declined YoY in 40 of the largest 100 cities in America according to data from Apartmentlist. Meanwhile, vacancy rates are surging due to a big increase in evictions.
Cities such as Las Vegas, Phoenix, and Los Angeles have some of the most empty apartments as a result of these evictions.
REVENTURE APP: https://www.beta.reventure.app/dashboard
DISCLAIMER: This video content is intended only for informational, educational, and entertainment purposes. Neither Reventure Consulting or Nicholas Gerli are registered financial advisors. Your use of Reventure Consulting’s YouTube channel and your reliance on any information on the channel is solely at your own risk. Moreover, the use of the Internet (including, but not limited to, YouTube, E-Mail, and Instagram) for communications with Reventure Consulting does not establish a formal business relationship.
Image(s) and/or Footage used under license from Shutterstock.com. https://www.shutterstock.com/
Additional stock footage provided by Envato Elements. https://elements.envato.com/