The block purchases of single-family
houses by institutional investors, which began during the housing and
foreclosure crisis, was first credited with putting a floor under the housing
market in 2010 through 2012. Since then, it has been blamed for keeping large
numbers of homes off the market, leading to shortages and higher home prices. Some
owners have been criticized as well for landlord abuses.
The Urban Institute has now published
research on another aspect of institutional ownership of rental properties. UI
says these findings should be considered a possible model rather than something
UI analysts Laurie Goodman and Edward
Golding say that most of the homes purchased by Wall Street investors as
rentals need repair to enhance rentability and the institutional buyers have
significant advantages not available to individuals in purchasing and improving
them. The authors propose studying some of the methods these buyers use improve
the competitiveness of individual homebuyers to benefit from buying and
rehabilitating fixer uppers to live in.