Back in 2008, the housing market was in freefall. With foreclosures at record highs, homeowners nationwide had to return their residences to the banks. The problem? Banks didn’t want them. Big banks never wanted to be conglomerate landlords. So, who did they pass the homes off to? Institutional investors, REITs, and iBuyers that many real estate investors fear and also blame for today’s real estate problems. But is today’s affordability crisis really Wall Street’s fault, or is there someone else to blame?
Back from Moody’s Analytics, we’ve got Thomas LaSalvia and Ermengarde Jabir on the show to explain the situation. Over the past few years, there has been quite a lot of bad blood between single-family rental investors and institutional investors on Wall Street. For small, mom-and-pop investors, these large landlord conglomerates seem to be stealing homes, making it harder for new investors to get into the housing market and even more challenging for first-time homebuyers to get a primary residence. But, the data points to something different.
Ermengarde and Thomas explain exactly what institutional investors have been doing as of late, how they may have saved the housing market during the last crash, whether or not they’re still buying in today’s market, and how they’re affecting everyday homebuyers. We’ll also touch on pricing, affordability, and why new construction is kicking starter homes off the to-build list.
In This Episode We Cover
What led to the 2008 housing crash and how Wall Street stepped in to stabilize prices
How institutional investors have been growing over the past decade and their plan for the future
Single-family home construction and why first-time homebuyers AREN’T the target market
Homeownership, America’s “renter nation,” and whether or not Wall Street is stealing homes from buyers
Why institutional investors ONLY buy in specific real estate markets (and where they’re buying now)
Who owns the most single-family rental properties across the country
And So Much More!
Links from the Show
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SVB’s Risky Bailout and The Bank Run “Domino Effect”
How Did A $200B+ Bank Collapse In 48 Hours?
On the Market 81 with Thomas
Is Wall Street Ruining the Housing Market?
Get the Latest Real Estate Insights from Moody’s Analytics
Connect with Ermengarde & Thomas:
Ermengarde's Email
Thomas' Email
Check the full show notes here: https://www.biggerpockets.com/blog/on-the-market-90
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