Home / Business and Economy / Wall Street Bets Big on US Rentals as Housing Costs Soar
Wall Street Bets Big on US Rentals as Housing Costs Soar
17 Dec
Summary
- US home prices surged while median income remained stagnant.
- Build-to-rent homes now represent 10% of new constructions.
- Investors explore HEAs and fractional shares for rental market access.
The US rental housing market is experiencing a surge in investor interest, with major firms like Blackstone making significant bets as homeownership becomes increasingly unattainable for many Americans. With median home prices soaring to $410,800 and household incomes struggling to recover, the demand for rental properties is at an all-time high.
The "build-to-rent" model is gaining traction, with developers constructing single-family homes specifically for leasing. This segment has doubled its share of new homes since 2021, reaching 10% as of late 2023. Institutional investors are actively participating, recognizing this as a burgeoning asset class poised for substantial growth.
For individual investors, opportunities exist through platforms offering Home Equity Agreements (HEAs) and fractional ownership of rental properties. These options allow participation with lower capital outlay and reduced landlord responsibilities, providing exposure to the growing rental market and its potential for attractive returns, even amidst economic uncertainty.
