Salient to Investors:

Jonathan Gray at Blackstone said:


  • The institutional buying wave has passed and Blackstone’s acquisition pace has declined 70 percent from its peak last year
  • Blackstone has narrowed most of its purchasing to Seattle, Atlanta, Miami, Orlando and Tampa.
  • Institutional buyers are tapering their buying and are in a relatively limited number of markets, yet home prices continue to rise strongly, even in markets where institutional buyers have not purchased a single home.
  • Institutional investors are not going away even though their size will remain a modest part of the market.


Private-equity firms, hedge funds, REITs et al have spent more than $20 billion to buy as many as 200,000 rental homes in the last 2 years.

American Homes 4 Rent and Colony American Homes have been scaling back as home prices have risen 24 percent since a post-bubble low in March 2012.

Jade Rahmani at Keefe, Bruyette & Woods said large investors are focusing on fewer locations as they gain experience and prices rise and account for at most 10 percent of the 2 million homes bought by investors in the last 2 years.

RealtyTrac said corporate investors bought 25 percent of homes sold in the Atlanta region, where prices are up 37 percent since the March 2012 trough.

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