"President Donald Trump said on Wednesday that he is working to ban certain institutional investors from buying single-family homes in an effort to increase the nation's housing supply and lower housing costs," reports my local NBC affiliate. Apparently within minutes of the announcement, Blackstone's stock value dropped by approximately $17 billion. It recovered much of its value, but was still trading lower after the announcement.
This is having a big impact in suburbs like mine. I've watched house after house go up for sale, only to be bought by an out of state LLC and transformed into a rental property. While I don't want to stereotype anyone and everyone who rents, I can say that they are usually younger couples who cannot afford a home and are renting until they can. This is detrimental to the neighborhood because these people never form any connection to...or no relationship with the permanent residents. We once had a stable, tight-knit community here where everyone knew each other and had each others back. Now, there are increasingly more "strangers" who won't integrate into the micro-community. I also have a feeling that having rental properties in the neighborhood will eventually affect property values of the permanent residents.
ReplyDeleteI live on a street with a lot of rentals (part of one side of the street are a string of duplexes) and a couple of the houses are rentals. It seems a rather mixed lot. Some of the renters will live there for years while others seem to have a fairly regular turnover. But, yes, those that own their homes seem to stay forever because there is little turnover. It was somewhat sad for my kids growing up because the rentals seemed to bring the few families with kids their age, but those families rarely stayed more than a couple years.
Delete