Large, opaque corporate entities are reportedly targeting residential neighborhoods across the US, quietly outbidding everyday Americans chasing the dream of owning their own home.
The Tampa Bay Times is tracking a surge in companies increasingly “taking over” neighborhoods by making direct cash offers to homeowners in Tampa Bay, Florida.
Once a sale is made, the home is converted to a single-family rental property by an entity that operates through a web of nondescript LLCs, making it tough to trace true ownership.
According to the Tampa Bay Times, large companies have now purchased roughly 27,000 homes across three counties in the region under a web of LLCs, and 70% of the properties are linked to Wall Street-backed investors and private equity firms.
The phenomenon is not isolated, with a rise in institutional home ownership reported in markets across the US, particularly strong in high-growth areas like Atlanta, Nashville, and various parts of Texas.
The land grabs are notorious for driving up home prices and lowering supply.
Tamika Morris, a local of St. Petersburg, says she gets piles of junk mail and endless phone calls from companies with names like “HomeInc” and “HomeVestors” who offer to buy her home with cash.
The person on the phone usually doesn’t say which company they’re calling from, but often asks Morris to name her price. Says Morris,
“I am very thankful that I don’t have to look for a home at these prices right now. I don’t know how anybody can make it…
There’s no amount of money for me to be able to give up land… Land is important in the history of our family. Having something to call our own is important.”
A recent Reuters poll found that US voters rated the scarcity and cost of housing as their second most pressing economic issue, following fears of stagnant income and rising prices.
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