3 ms·
In fact, companies like BlackRock et al specifically target areas where new construction is unlikely, because of NIMBYs and zoning. Why didn't investors buy up
by dionidium 5y ago
In fact, companies like BlackRock et al specifically target areas where new construction is unlikely, because of NIMBYs and zoning. Why didn't investors buy up single-family homes in the 70s or 80s or 90s? Did they just decide to get greedier in 2021? No, it's precisely the high prices and lack of new construction that attracts them to these assets now, where historically it wasn't profitable.
This is from the SEC filing of one such investor (Invitation Homes) [0]:
> We have selected locations with strong demand drivers, high barriers to entry and high rent-growth potential.
And:
> We have selected markets that we believe will experience strong population, household formation and employment growth and exhibit constrained levels of new home construction.
[0] https://www.sec.gov/Archives/edgar/data/1687229/000119312517029042/d260125d424b4.htm https://www.sec.gov/Archives/edgar/data/1687229/000119312517...