Wall Street’s Rental Bet Brings Quandary Housing Poor
By Heather Perlberg and John Gittelsohn - Aug 29, 2013
LaTanya Moore-Newsome, a real estate agent with Century 21 in Atlanta, has been calling Wall Street-backed landlords for months on behalf of her low-income clients with government housing vouchers.
She said some of the area’s biggest homebuyers in the past two years, including Blackstone Group LP (BX), American Homes 4 Rent and Silver Bay Realty Trust Corp., repeatedly told her they had nothing available for tenants who use subsidies under the federal Section 8 assistance plan. Last week, she finally got a positive response from Blackstone’s Invitation Homes unit, which said it would accept applications from her renters.
“It’s a really uphill battle dealing with these investors,” Moore-Newsome said. “You already have to deal with some of the issues with owners not wanting to take Section 8 in nicer areas. Now you have these big companies come into their neighborhoods and they say we’re not renting to you either.”
Private-equity firms, hedge funds and real estate investment trusts have bought more than 100,000 U.S. homes, becoming dominant single-family landlords in markets hardest-hit by the housing crash such as Atlanta. As the companies seek thousands of tenants to fill newly renovated properties, their decision whether to lease to low-income Americans with Section 8 vouchers stands to affect both their profitability and poor residents who have been longtime renters.
Blackstone Inherited
Blackstone -- the largest company in the fledgling industry after spending more than $5 billion to buy 32,000 U.S. homes -- inherited at least 200 Section 8 tenants when it bought a portfolio of Atlanta-area houses in April for about $100 million. That brought the amount of homes occupied by voucher holders to less than 1 percent of its portfolio, the company said at the time.
more...
http://www.bloomberg.com/news/2013-08-29/wall-street-s-rental-bet-brings-quandary-housing-poor.html
= new reply since forum marked as read
