That sure, but the statement made was buying in bulk leading to visions of buying homes at Costco or Sams Club
Well, they scan toilet paper at the cash register one pack at a time. (I know there's only one seller but that made me laugh. )
There are entire new developments that were purchased by corporate entities here. They then lease the units out. Pretty solidly in the bulk category.
A few companies have gone in and purchased entire developments from the builder or even partnered with a builder to build entry-level single-family homes specifically to rent. If that isn't bulk, I don't know what is. The builder loves it because they have guaranteed sales, can lay off the entire sales staff, and not even have to mess with building and maintaining model homes. No messing with options or customizations either. The company doing the mass buying gets a better deal as well. The only unhappy people are the buyers that wanted to buy in that area and now will be forced to rent, look elsewhere, or compete against more buyers for nearby houses. This is not country, state or sometimes not even metro area wide. Sometimes it is just a particular suburb or two. They target areas they believe are going to grow by watching corporate announcements about new facility locations. In 2021 they were typically getting enough rent to pay off the houses in 8 years. The fact they use investment cash and/or cheaper loan rates than entry level buyer can get makes this even better for them. I concur that not everyone should own a home, but entry level buyers competing against corporations that can pay cash or use cash from a corporate loan at a significantly discounted rate isn't very fair, but it is life in a free market economy. I also wouldn't be surprised if they are getting some insider info from corporate board members who are invested in the funds on where to start buying before the "new factory" announcement become public.
Entire developments are built by developers too so yeah, they are built in bulk and can be bought in bulk, but that isn't what was being talked about. Hell, buying a huge apartment building or a skyscraper is buying rental property in bulk. I am curious though - where has a company (not even going to worry about foreign or domestic) bought an entire subdivision of single family homes they then rent out? That's a new one on me.
But that is no different than being a developer who builds a rental development. That isn't buying single family homes in bulk. Hell the condo complex Evelyne lived in on Hilton Head was built by a develop who rented out anything he didn't sell. So yeah he owned/built bulk rental property but no different than a huge building or other apartment complex which people have been building for what, hundred years or more? As you noted - the entry level buyers are not competing in more than one subdivision or small area of a town, there is nothing remotely forcing them to buy right there. Just because they want to live where they can't afford doesn't mean they deserve to for some reason. Buying property where you think business is going boom is a long held american tradition. Funny how people keep getting upset about it.
Not really upset about it as long as they are using publicly available information. I have seen no proof insider information is being used, but also wouldn't be surprised at all if it is.
Yeah, I'm sure on that end it's all publicly available. The locals love bragging when they're getting an amazon warehouse or google is building somewhere or the like. It never stays remotely secret.
And I'm still picturing someone walking into Costco to the real estate aisle and grabbing a case or two
I know of one in McDonough that was bought out in whole about three years ago. In the last three years there have been 20 or 30 here in Georgia alone. Big business all over the country.
Hasn't that been a normal thing for a while for vacation village type stuff? Sister did an Air B&B there last year in a house farm but it wasn't all one company.
https://www.builderonline.com/data-...gn-to-accelerate-and-transform-the-industry_o This is a couple years old from when it was taking off. The reason it is being brought up as an issue is that it is a change in approach. A developer renting out a couple of units until he can unload them is not the same as a 150 unit housing development being built (and would traditionally be sold one by one) with no intention of ever having them sold as single units. It definitely skews the pricing for that area. And this isn't about high end properties, though they are being bought up as well. DR Horton and Beezer aren't building luxury. This is Levittown-level construction that has traditionally been the domain of the couple converting from DINK to breeder status who want a yard instead of convenience to their favorite bar.
Oh I totally agree it's a different approach - sort of. It seems the real main difference is the individual properties aren't attached to each other. And if there are that many people willing to rent smaller cheaper homes rather than apartments it's no surprise companies are supplying them. So evidently some of the purchases are in bulk. Cool.