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Wall Street to use its $110 billion treasury to capitalize on the shifting housing market

Wall Street to use its $110 billion treasury to capitalize on the shifting housing market

Posted on January 4, 2023   |  

The institutional investors saved up to $110 billion to purchase or build single-family rentals, the most ever accumulated by investors to acquire U.S. homes.

The money is enough for 400,000 homes and out of the $110 billion, $30 billion has already been dedicated to properties being leased or developed.

Institutional investors already possess 700,000 which is only 3% of the nation’s 20 million single-family rentals, but it is predicted to grow by 40% by 2030.

Investors are seeking a better bet than their traditional property holdings, which contain struggling office buildings, single-family rentals, multifamily buildings, and industrial assets.

In the 1st two years of the pandemic, institutions injected $50 billion into the single-family rental market but the market shifted in recent months due to growing mortgage rates which discarded institutions.

In November, single-family rental transaction volume fell annually by 70%.