Blackstone buys hundreds of homes to rent out
New York-based major investment firm Blackstone (BX) increased its purchases of single-family homes in Sacramento, Calif. to more than 500 properties, up to 40 homes per week, over the past few months, according to Hudson Sangree and Phillip Reese of the Sacramento Bee.
The bulk purchases are a result of mass volumes of vacant properties due to foreclosures that are offered at ‘fire-sale prices.’ Blackstone’s purchases of the single-family homes are expected to boost home prices by clearing out distressed properties to create rental housing.
However, there is a risk that the bulk purchases could pose a challenge to first-time buyers as well as shift neighborhoods once occupied by homeowners rather than renters.
In November Blackstone began speeding up its home-purchase pace, buying 145 properties, almost 50 homes a week — an indication that the firm believes the market is improving.