Full Citation

Title: The metropolitan and neighborhood geographies of REIT- and private equity–owned single-family rentals

Citation Type: Journal Article

Publication Year: 2023

ISBN:

ISSN: 0735-2166

DOI: 10.1080/07352166.2023.2276766

NSFID:

PMCID:

PMID:

Abstract: After the U.S. foreclosure crisis, institutional investors purchased thousands of homes and converted them into rental properties. Past research links these entities to a number of negative outcomes, including rent increases and eviction filings. This paper examines a larger variety of investors, including private equity firms and contract sellers. Using a national dataset of real estate transactions from 2010 to mid-2017, we examine the inter- and intra-metropolitan geography of institutional investors. Consistent with prior research, we find that large publicly traded entities purchased homes in growing Sunbelt metros, yet some specific firms target weaker-market metros. Large, publicly traded firms have concentrated investment in higher-value neighborhoods with larger shares of white residents. In contrast, private equity firms and contract sellers tend to invest in relatively lower-value neighborhoods with larger shares of Black residents. Results suggest different potential implications for these diverse actors’ investments, from crowding out prospective homebuyers to racial targeting.

Url: https://www.tandfonline.com/doi/abs/10.1080/07352166.2023.2276766

User Submitted?: No

Authors: Seymour, Eric; Shelton, Taylor; Sherman, Stephen Averill; Akers, Joshua

Periodical (Full): Journal of Urban Affairs

Issue:

Volume: 45

Pages: 1-25

Data Collections: IPUMS NHGIS

Topics: Housing and Segregation, Race and Ethnicity, Work, Family, and Time

Countries: