HUD says large investors are “impossible to compete with” and sees them as a threat to homeownership – a “much bigger problem” that needs to be addressed.
Risk insurance that covers construction damages is up 30%, and the rising cost of all types of needed insurance is causing some builders to reconsider new projects.
The U.S. has 49.5M rental units, and 46% are in buildings with four units or less. Of those, mom-and-pop investors own 70% – 1 out of 3 units nationwide.
Market changes call for investment recalibrations next year. Planning is mandatory even if fundamentals are strong and interest rates not historically shocking.
Given home prices and mortgage rates, hordes of RE investors likely won’t be back soon – but fewer first-time buyers also won't be losing homes to all-cash offers.
