Home News Real estate investment firms are crowding the housing market in Columbus and similar cities

Real estate investment firms are crowding the housing market in Columbus and similar cities

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Home buyers looking for a place to live are often left empty-handed when real estate investment companies across the country calculate a plunging market to buy home stock.

While companies claim to meet the community’s desire for more rental housing, Columbus experts say that some companies have adopted predatory practices, charged high rents, and are already in a difficult market. It states that it often keeps out individual buyers looking for a place in.

Rising interest rates and stock market instability may cool sales a bit, but the real estate market in Central Ohio is bright red. Inventories are low and many buyers are causing bid wars in the most popular areas.

US census statistics show that Franklin County already has the lowest percentage of homeowners in the state.

Recently a state senator in the Cincinnati region Introducing a bill This is intended to delay investment companies buying thousands of homes in a particular market in a state or country.

Senator Louis Blessing wants the public and nonprofits to gain the traction of bills targeting real estate that has passed foreclosures before investment companies have the opportunity to bid.

Senator Blessing said the bill is unlikely to gain momentum until the next General Assembly, but it is not a “panacea” to solve the affordable housing crisis in a thrilling market. But he said the bill could be a bipartisan bill that would make it easier for families to buy.

“When you are a homeowner, you can build wealth between generations, you can pass it on to your children, and it’s really many people from the poor to the middle. It’s a way to move to and beyond the middle class, and beyond, “Blessing said.

The blessing said that Ohio people need access to stable and affordable housing in order to build a strong family.

Senator Congratulations hopes to hold a hearing before the General Assembly closes that year’s meeting, but hopes to resubmit the bill after it resumes.

No other of Ohio’s 88 counties has as high a renter ratio as Franklin County. According to the 2019 US Census, 53% of homes are owned by owners, and that percentage is steadily declining. In 2005, nearly 60% of homes in the area were homeowners. The county is well below the state average of home ownership-66%. Hamilton and Kaiyahoga counties have the second and third highest percentages of renters in the 88 counties, but both have a homeownership ratio close to 60%.

The proportion of lessees in the county is that real estate investment firms, which were heavily affected by the aftermath of the 2008 housing collapse, focus their portfolios on growth in large and medium-sized cities with active job centers and a fierce housing market. It is expected to grow as it grows. , Like Columbus.

“We know that currently about 20%, (or) 17% of all homes sold in Columbus are directed to investors, and that’s an increase of 85% over the previous year.” Said Curly Booth, Executive Director of the Affordable Alliance in Central Ohio. “And these types of investors are flooded with $ 400 million worth of investment, so the scale is unprecedented in the history of central Ohio.”

According to Booth, these companies are traditionally targeting areas where single-family homes are traditionally filled with $ 200,000 to $ 300,000 homeowners.

“This is one of the most difficult prices a working family can break into, and it’s where these investors are most focused,” Boos said.

Columbus Realters’ April Homes Report, coupled with rising interest rates, limited housing stock, and decades of new home construction in central Ohio, states that markets in the region meet the demands of everyday buyers. We have found that we need more of these mid-priced homes for.

As a result, regular homebuyers looking to buy in the area are highly competitive, especially in suburban communities with good school districts with low rental inventory and few entry-level homes.

It puts homebuyers in the midst of “feeding frenzy,” Booth said, directly competing with well-financed investment firms.

“It’s not a fair fight. When these companies can offer to close their homes two hours after they appear on the internet, when they can pay all the cash, when they buy as-is, they inspect No, when you can’t see it, when they can, and every time humans will lose to Wall Street’s computer algorithms, “she said.

Janene Parham and Radhika Moore are realtors who guide sellers and buyers through Red1 Realty’s enthusiastic feeding.

“I don’t know how homebuyers can compete with cash offers. It only takes 10 days without a request for relief. That is, when making an inspection or request for relief, that is … a great situation for the seller. But it’s scary for homebuyers, “Parham said.

Radhika Moore (left) and Janene Parham (right), members of the National Association of Realtors in Red1 Realty, Westerville.

Mr Param said companies are flocking to the list. The two said a recent buyer had been on the market for a year in search of a suitable home and offered an offer in case of contingencies that exceeded the asking price by $ 150,000. The woman still lost her bid for the company.

According to Columbus Realtors, in April, homes on the market in Franklin County were on the market for an average of 11 days, down from 13th last year.

Homes in some communities are selling even faster. Blackrick homes in April were on the market in just four days from the 14th of last year.

According to Moore, large companies are pricing not only families looking for a home to live in, but also small local real estate investors who are more in tune with local needs.

“There are very good investors who really want to buy and repair real estate. [charge] Affordable for rental or purchase. We need them, so welcome them. But we’re talking about an investment company that dominates the industry, “Moore said.

Companies often raise money on hundreds of millions of dollars in bank loans, and profits are typically sent from the community to shareholders and debt repayments. Companies can afford to offer above the asking price, while other borrowers often cannot.

Moore and Parham are doing what they can to improve the situation by connecting buyers and sellers directly and warning sellers that transactions with large corporations are not as sweet as they look.

And many of these companies are known to not meet their maintenance needs. Some sellers want to keep their old neighbors happy and maintain the personality of their neighbors.

Boos recommends that buyers and sellers contact their home counselors as they navigate the market to ensure that their rights are respected. Homeowners can also be the target of these companies-sometimes they lie to convince people to sell their homes.

Moore and Parham said realtors can also help.

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