Build-to-rent trend gains traction
After the financial crisis, investors began buying up foreclosure properties and renting them out. But after the foreclosure well ran dry, investors began looking into a whole new sector – new builds.
Now, many large investors are joining the trend and buying up homes from builders across the country, according to an article by Heather Perlberg for Bloomberg.
It was a rare lucrative business for Wall Street in the aftermath of the financial crisis: snapping up properties in foreclosure and renting them out. So good, in fact, that now, as the distressed pool dries up, some investors are refusing to let the rental-model fizzle. They’re building more and more of the houses themselves.
VIA HousingWire: As Foreclosure Well Runs Dry, Investors Look To New Builds