It is no secret that the larger real estate investors have significant holdings. What is more uncommon until recently is large institutional investors buying up individual single family homes. These investors claim that residential real estate has weathered well during downswings in the economy and provide a good hedge against inflation. The action of creating new rental stock of single family housing infers investors may think that more home owners may become renters. Furthermore, with large swaths of product owned by a single or few entities, they will be able to control the market in given areas and influence valuation levels. In effect, the investors may be placing themselves in a position where they are the main thrust of demand in an area and will click the levers of valuation increase and declines. Consequently, the universe of the word "market" in the future may have a very different meaning from what it infers today. #recg #demitryomrin #commercialvaluations #investors #institutionalinvestors #inflation #hedge
- Demitry Omrin