Invitation Homes CEO says ban on institutional homebuying will bring down prices, but not immediately
Article excerpt
In this article The CEO of Invitation Homes, the nation's largest single-family rental landlord, said he believes the recently passed housing bill that bans investors like him from buying existing homes will eventually lower home prices, but not in the short-term. "I believe in the medium- to long-term, it definitely will," said Invitation Homes chief executive Dallas Tanner. "I think 90% of the bill focuses on deregulation. How do we simplify capital coming into housing? Are there ways that we can spur up the supply side challenges that we have? I think overnight in the immediate term, it's a bit trickier because there's more to the story than just what the bill addresses." Tanner pointed to mortgage rate volatility, high construction costs, and zoning and regulatory imbalances. In early January, President Donald Trump called for a ban on large-scale investors buying single-family homes to rent. He posted on social media that, "People live in homes, not corporations." This was part of a larger push to tackle the affordability crisis in housing. Some argued that institutional investors were pushing owner-occupants out of the market and inflating home prices. The ban became law in July, preventing investors who own more than 350 homes from purchasing any more existing units. They can, however, buy new single-family homes specifically built for rent. That is where Invitation...
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Invitation Homes reported better-than-expected earnings at the end of July, even though rents and demand are not as healthy as they were in the first few years of the pandemic.
