Housing-News-Report-November-2016

HOUSINGNEWS REPORT

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by Michigan and Pennsylvania, both states moving red politically in 2016.

STATES WHERE RESIDENTS OWN MOST OUT-OF-STATE SFR

Meanwhile states with the most out- of-state investment homes owned by residents are more heavily tilted blue politically, led by California. Two red states — Florida and Texas are Nos. 2 and 3 on the list — but are followed by three blue states — New York, Illinois and Virginia. States where Californians own the most investment properties are Arizona, Nevada, Texas, Florida and Oregon, while New Yorkers own the most investment properties in Florida, Pennsylvania, New Jersey, North Carolina and Georgia. Imitating Institutional Investors Institutional investors led the way in buying single family rentals beyond their backyards. The institutional buying spree started around 2009 and peaked in 2012, triggered by a perfect storm of market conditions that lured large private equity firms and hedge funds into the space. Along with Beasley’s Waypoint Homes, which began aggregating single family rentals at large scale in 2009, two other early institutional investor entrants were Carrington and Oaktree. The two companies formed a partnership to buy single family homes in bulk quantities in 2010, according to Ryan McBride, who worked for Carrington at the time and helped put together the buying partnership.

California 452,294

Florida 280,736

Texas 250,604

New York 196,763

Illinois 153,743

Virginia 126,304

Pennsylvania 124,375

Georgia 105,615

New Jersey 101,176

Arizona 100,927

A lot of demand is people in the Bay Area and New York City looking

to buy in the Southeast .” Gary Beasley | CEO and founder of Roofstock

Colony American Homes to become the third largest institutional investor in the single family rental market, according to the Single-Family Rental Primer , published by Keefe, Bruyette & Woods in September. Bay Area Buyer Looks Southeast “We have one Google engineer who just bought his sixth house. He said ‘this is fantastic, real estate is so expensive here and I don’t want to be tied just to Bay Area real estate,’” said Beasley, noting the engineer

had purchased investment homes in Florida and Atlanta and was now interested in North Carolina buying opportunities. According to an analysis by ATTOM Data Solutions, Florida has the most investment single family homes owned by out-of-state owners of any state, followed by North Carolina, Tennessee, Arizona, Georgia and Texas — all red states in the 2016 presidential election. The first blue state on the list is California at No. 7, but that is followed

ATTOM Data Solutions • P3

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