Corporate Giants are Buying Up Our Homes
Filed under: Real Estate Market
There’s no doubt that the real estate market changed during the 2020 pandemic, and we are seeing continued changes in the industry. What are the factors that are influencing the high demand and low inventory?
Corporate Real Estate Purchases in Recent Years
One thing that needs to be looked at is the way that big corporations are buying up the inventory in the residential real estate market. In 2021, corporations bought 28% of all the homes sold in Texas. That figure was 19% in Georgia and 16% in Florida.
More and more, properties are owned by corporations instead of families or individuals. This is having an undeniable impact on the real estate market.
Rent Prices are Going Up
Rent hikes for single-family homes in this region have outpaced other parts of the country. Since the onset of the pandemic, rents for a 2-bedroom detached home increased about 42% in Phoenix, 44% in Tampa, and 35% in Atlanta. These numbers are higher compared to the nationwide rent increase of 24%.
Working Class Families are Being Impacted
Experts say that many of the properties purchased by institutional groups were previously owned by people who were destabilized in recent recessions.
After the pandemic, people saw the opportunity to go into these lower-income and working-class neighborhoods and start buying up these houses. Communities that the working-class demographic can afford have been targeted by these corporate giants.
They are holding these houses, often for years, and taking them off the market. This is making it harder for young people and working-class families to own a house.
There is Hope: You Can Still Buy a Home
Even though the real estate market might feel challenging, there are ways that you can afford a home. The first step is to reach out to our local real estate team to explore potential options that suit your budget and needs. I’m always here to help! Call, text, or email so that we can find the right home for your family: (951) 473-0390 or [email protected]