> The country’s most prolific home builder [DR Horton] booked roughly twice what it typically makes selling houses to the middle class—an encouraging debut in t

> The country’s most prolific home builder [DR Horton] booked roughly twice what it typically makes selling houses to the middle class—an encouraging debut in the business of selling entire neighborhoods to investors. https://www.wsj.com/articles/if-you-sell-a-house-these-days-the-buyer-might-be-a-pension-fund-11617544801 https://www.wsj.com/articles/if-you-sell-a-house-these-days-... I see no future for this model. The reason is simple. Individual buyers avoid high-rental areas because they know the renters will depress home values. This sets up a reinforcing cycle. The neighborhood fills up with renters with no incentive to invest in the costly maintenance required to keep properties attractive. Landlords have little incentive to invest in long-term improvements, either. Tragedy of the commons. Step by step, the neighborhood slides into the abyss. So let the Blackrock's of the world buy up entire neighborhoods and turn them into rentals. As soon as the inevitable mean reversion happens in house prices, these home rental businesses will be toast.