The housing market is slowly improving with investors fueling the recovery. Investors currently make up about 32% of the home sales nationally, according to the National Association of Realtors. Buying $100 million worth of single-family homes a week, Blackstone Group (BX) has spent $3.5 billion to date, according the Wall Street Journal.
Large institutional investors like Blackstone along with individual investors are buying up homes to rent as landlords in order to take advantage of the growing rental market. According to the most recent data from the U.S. Census Bureau, about 12% of U.S. households rented single family homes in 2011 compared to 9% in 2004.
The surge of investors is helping jump start the housing market, but some see the potentially temporary investor based housing market creating more risks.
“If they decide…they don’t really want to be in this business all of a sudden you could have a ton of new homes coming back into the market and then that supply situation will get flipped very badly against the market itself.” said The Daily Ticker’s Aaron Task.