Phoenix (3TV / CBS 5) -Institutional investors are looking at the Phoenix housing market. Tenants say rents are rising as a result, but economists say they are not sure if investors should be held accountable.
According to Redfin, more than 30% of homes sold in the Phoenix market in the third quarter of last year were purchased by investors. Average rent has risen by about 30% over the past year.
“People liked to live here because it was affordable compared to California, but I think it’s definitely coming to a point where it’s definitely more expensive than what people first came here. “While she was in school, Cassandra Davis, who lives on a fixed military salary, said. “The price increase doesn’t increase my benefits, so my money runs out a little faster,” Davis said.
AZ Family Investigates has investigated data from the Maricopa County Councilor’s Office, including information on all residential assets in the county. It turns out that hundreds of investors are buying tens of thousands of properties. The 700 largest investors own more than 71,000 residential properties.
The most concentrated postal codes for investor-owned homes are:
- Mesa – 85209, 3,251 Investor Properties
- El Mirage – 85335 with 2,155 properties
- Scottsdale – 85260 with 1,596 properties
- Properties of Mesa –85202 and 1,438
- Backeye – 85326 with 1,223 properties
- Phoenix – 85015 with 1,194 properties
The largest single owner of investor real estate is Invitation Homes, which began buying homes in the Phoenix market in 2012. As of this quarter, the company owns 8,744 homes here.
“In 2021, we invested more than $ 35 million in home renovations and improvements in the Phoenix area, helping more than 120 local businesses. Phoenix has 189 full-time employees. There is one of the two corporate offices and an office where a local team manages a home owned by Phoenix, “said an Invitation Homes spokeswoman.
Tenants who spoke to the AZ family survey generally had positive comments about the company. However, they said Invitation Homes had substantially increased rent at the end of each lease. One lessor, Antonio Perez, said Invitation Homes has raised rent by nearly $ 600. Therefore, Perez has moved out.
“Our rent is market driven and sets competitive prices in all the markets in which we do business. The single-family home market is the rise in home prices and the associated rent. We are experiencing record levels of demand and rising inflation, reflecting the rise in housing. Residents have many choices, so the rent we charge is consistent with local market factors. We had to make sure that, “said an Invitation Homes spokeswoman.
Economist Elliott Pollack believes there is room for growth, not just for investors. He says the data show that housing is in too high demand and too low in supply. “These people are coming in to see this supply and demand situation. They bought their homes in anticipation of rising rents,” said Pollack, head of the Arizona Home real estate issue organization. ..
According to Pollack, the valley saw an oversupply of housing units during the first decade of the new century. He said there was a significant shortage of new units in the next decade. According to Pollack, it is primarily responsible for today’s situation, along with Arizona’s population growth.
“Given how long it takes to get through the city, labor constraints and supply chain constraints, it’s going to be really hard to get things back to normal right away,” Pollack said. Says.
Pollack spoke with state leaders on the issue, and this week Governor Doug Ducey told his family in Arizona that he was concerned about the current housing situation. “I’m really interested in affordable homes. I want police, firefighters and teachers, but not only can they afford homes, but they can afford homes where they work or work nearby. I hope there is, “Ducey said.
“It wasn’t long ago that in 2008 and 2009 many Arizonas thought they might not be able to sell their homes and get assets from them. Now we are. The fastest growing and rising home price state in the country. This is great for those who are at home and have fairness, but as a result rents rise and enter the market. There are people in need, so there are some plans to work at the legislative level on affordable housing, “Ducey said.
But so far, there are few bills in Congress that could help improve the situation. “As a result, there are wealthy people who are getting richer because they buy all these units and price them from these homes to the average Arizona citizen,” said State Senator Martin. Quezada says.
He says housing costs are one of the most important issues not addressed by state leaders. “Members here don’t understand how dramatically their rents have increased, so I think it’s just a disconnect from the people we serve,” Kezada said.
Company faces parliamentary oversight
Invitation Homes Inc is a nationwide company that turns homes to buy and rent homes. The company is one of three companies facing the oversight of home purchases by parliamentarians.
Senator Elizabeth Warren of Massachusetts sent a letter We asked the CEO of the invitation if his family was locked out of raising their homes and rents by buying large numbers of homes nationwide.
“Private equity firms and rich investors have taken advantage of housing shortages to buy large numbers of homes, raise family rents and fill profits. Record investor activity in the housing market. As a result, these companies need to respond to their business practice of keeping Americans out of home ownership and burdening their notebooks with rapidly rising rents, unless they crack down on looting by Wall Street investors. , We cannot solve the affordable housing crisis and reduce consumer housing costs, “said Senator Warren.
of Answers to Senator Warren’s QuestionAccording to Invitation Homes, 80,000 properties make up a “small percentage” of the total market.
In a statement to the Arizona family, the invitation said:
“Phoenix continues to be an important home for us because it is a city that continues to fascinate people because of its good work, school, lifestyle and climate. Phoenix continues to be 2.5 times the national average. Has achieved strong demographic growth and is an attractive market for residents and therefore phoenixes. “
Invitation Homes operates in some of the country’s most competitive housing markets, saying “our rent is driven by the market.”
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