Home sales rebounded last year in a number of beaten-down markets, and institutional investors are the reason. Institutional investors comprised 30% of Miami sales, 23% of Phoenix sales, 21% of Charlotte sales and 19% of Las Vegas sales.
Prices increased accordingly. Phoenix posted year-over-year gains of 23%. Las Vegas prices popped 12.9%, Miami 10.6% and Charlotte 5.3%.
These investor-driven price spikes have turned the rental economics equation upside down just as renters are harder to find and keep.
Las Vegas broker Tina Africk, who manages 60 single-family home rentals, told Bloomberg that houses that were formerly rented in 30 days can now take 60-90 days to fill. At the same time, rents have fallen about $100 a month from a year ago.
In Phoenix, sales prices are soaring, while rents are up only 1.6%. The competition for renters is keen. Arizona’s quick repossession process has cleared the market quickly. Most people who have lost their homes have found a place to rent already. “There are a lot of properties out there, so the competition to get your property rented is fierce,” leasing agent Cathy Svoboda told Bloomberg. “Tenants are very savvy. If you’re overpriced by $25, they’ll let you know and go to another one around the corner.”
Rents in battered Atlanta are also soft, according to James Breitenstein, whose company has bailed out of Phoenix while buying 300 homes in Atlanta and Las Vegas
Atlanta, Phoenix and Las Vegas are three of the weakest markets right now. To use them as examples is to intentionally deceive. Why is your author not talking about Seattle, Austin, SFO, Houston, Dallas, Pittsburgh etc. where a boom is happening and vacancy rates are well below 5%?
I get tired of you perma bears presenting things in the worst possible light by cherry picking the data. |
