GWINNETT COUNTY, GEORGIA — It’s a new phenomenon sweeping across the nation: big institutional investors buying up foreclosed homes by the hundreds – even thousands – in distressed communities.
Even though the housing market is improving, a new Morgan Stanley report says homeowners who have defaulted on their mortgage will likely have no choice but to rent, and that will result in “moving the country towards a rentership society.”
And that’s one of the big reasons why large investors are buying up so many houses so quickly.
“Looking back a year and a half ago, not one institution owned more than 1,000 single family rental homes,” says David Bragg, Managing Director at Green Street Advisors. “However, today the top six players combined own 80,000 single family rental homes.”
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