Second, risks in the middle East are rising again. First, the risk of an escalation in trade tensions, with the investigation into Chinese intellectual property practices. Second, risks in the middle East are rising again. Currently, we do not think that those developments have a major significance for the real estate markets. if there is a return to a situation of rising risk in the dollar, this upset could cause prices to become volatile again.
In the US, the downward revision of the first quarter 2018 is partly offset by some upward revision for fourth quarter 2017, and employment remained strong .. Overall, growth in the first quarter still appears to be 3 a pace, and is expected to pick up later in the year, because of the effects of the US fiscal stimulus.
The most recently proposed data suggest that the Pollyanna effect may may have been supported during the period of modernity financial market volatility. Therefore, it is still too early to jump to a conclusion as to the end of the current upswing, despite ongoing trading tensions.
The Los Angeles Times recently reported that institutional investors bought more single-family rental homes in 2017 to previous years, the first increase since 2013, according to data compiled by Amherst Holdings.
Wall Street Firms such as Blackstone Group and Tom Barrack 'Colony Capital Inc. rushed into the single-family rental business when US feeding markets were reeling from the foreclosure crisis and homes were available and cheap. The feeding frenzy was short-lived . By 2014, big landlords were already paring back their purchases as foreclosures filed up and they tackled the challenge of managing widespread homes. Now they & # 39; re buying again, at a time when single-family landlords are raising rents faster than apartment owners . While multifamily landlords face pricing pressure from new supply, very few single-family homes are built specifically for leasing.
Tricon, the third-largest publicly traded owner of US rental houses behind Invitation Homes Inc. and American Homes 4 Rent, bought about 850 homes last year, said Amherst, which analyzed data from CoreLogic Inc. The largest purchaser was Cerberus Capital Management, with an estimated 5,100 houses. Amherst itself bought almost 4,900 homes through its Main Street Renewal subsidiary.
There 's another factor driving Wall Street & # 39; s renewed acquisitiveness. Now with their businesses well - established, the large landlords are having an easier time financing purchases, said Greg Rand, CEO of OwnAmerica, an online platform for buying and selling rental houses.
Rental properties should remain well ahead of other major property type is they are more stable. Three important factors account for this stability:
1. They are less dependent on business cycles for occupation. It does not matter if interest prices and home prices are high or low, rental properties are generally more affordable.
2. Rental properties have shorter leases; the by offering greater protection from inflation than the long-term leases associated with other properties. That is, rents can be negotiated more frequently.
3. This pool of tenants is more consistent occupation than industrial and commercial properties, which usually have only a few tenants from which to choose.
