Historic Rental Home Buying Opportunity Ending

One of the only opportunities to buy homes for rent may be coming to an end.  HIstorically low interest rates, a firm rental market, and a collapse in home prices, allowed investors to buy single family homes not only below fair value but also at cap rates that were as good or better than those available in multifamily properties.  In the last year, prices in many of the best  markets have increased significantly.  The increased supply of rental homes has caused rents for rental homes to stagnate.  Now interest rates are on the rise.  Already in Los Angeles, the ability to buy rental homes at apartment cap rates is gone.  Other areas of the country may be in the 7th inning.  Soon  private equity and investors will start their exit from this value play.  That does not mean that homes sales and home prices will stop rising.  The article below reviews that discussion.

 

Historic Home Buying Opportunity Ending – Business Insider.

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