{"id":6109,"date":"2015-03-01T07:41:21","date_gmt":"2015-03-01T12:41:21","guid":{"rendered":"http:\/\/olduvai.ca\/?p=6109"},"modified":"2015-03-01T07:41:21","modified_gmt":"2015-03-01T12:41:21","slug":"housing-industry-frets-about-the-next-brick-to-drop","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=6109","title":{"rendered":"Housing Industry Frets About the Next Brick to Drop"},"content":{"rendered":"<h3 class=\"entry-title\"><a href=\"http:\/\/wolfstreet.com\/2015\/02\/28\/housing-industry-frets-about-the-next-brick-to-drop\/\" target=\"_blank\">Housing Industry Frets About the Next Brick to Drop<\/a><\/h3>\n<p><strong>Cashing out of the \u201cBet on America\u201d might get messy.<\/strong><\/p>\n<p>Stephen Schwarzman, CEO and co-founder of Blackstone Group, the world\u2019s largest private-equity firm with $290 billion in assets under management, made $690 million for 2014 via a mix of dividends, compensation, and fund payouts,\u00a0<a href=\"http:\/\/www.nytimes.com\/2015\/02\/28\/business\/dealbook\/blackstones-schwarzman-took-home-690-million-in-2014.html\">according<\/a>\u00a0to a regulatory filing. A 50% raise from last year.<\/p>\n<p>The PE firm\u2019s subsidiary Invitation Homes, doped with nearly free money the Fed\u2019s policies have made available to Wall Street, has become America\u2019s number one mega-landlord in the span of three years by buying up 46,000 vacant single-family homes in 14 metro areas, initially at a rate of $100 million per week, now reduced to $35 million per week.<\/p>\n<p>As of September 30, Invitation Homes had $8.7 billion worth of homes on its balance sheet, followed by American Homes 4 Rent ($5.5 billion), Colony Financial ($3.4 billion), and Waypoint ($2.6 billion). Those are the<a href=\"http:\/\/cdn.americanbanker.com\/media\/newspics\/AB011415RENTAL.jpg\">\u00a0top four<\/a>. Countless smaller investors also jumped into the fray. Together they scooped up several hundred thousand single-family houses.<\/p>\n<p>A \u201cbet on America,\u201d is what Schwarzman\u00a0<a href=\"http:\/\/www.tampabay.com\/news\/business\/realestate\/blackstone-other-investors-snap-up-thousands-of-tampa-bay-rental-homes\/2110744\">called<\/a>\u00a0the splurge two years ago.<\/p>\n<p>The bet was to buy vacant homes out of foreclosure, outbidding potential homeowners who\u2019d actually live in them, but who were hobbled by their need for mortgages in cash-only auctions. The PE firms were initially focused only on a handful of cities. Each wave of these concentrated purchases ratcheted up the prices of all other homes through the multiplier effect.<\/p>\n<p>&nbsp;<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Housing Industry Frets About the Next Brick to Drop Cashing out of the \u201cBet on America\u201d might get messy. Stephen Schwarzman, CEO and co-founder of Blackstone Group, the world\u2019s largest private-equity firm with $290 billion in assets under management, made $690 million for 2014 via a mix of dividends, compensation, and fund payouts,\u00a0according\u00a0to a regulatory [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[3838,303,305,2340,1940,1939],"class_list":["post-6109","post","type-post","status-publish","format-standard","hentry","category-economics","tag-blackstone-group","tag-fed","tag-federal-reserve","tag-housing-market","tag-zero-interest-rate-policy","tag-zirp"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/6109","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=6109"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/6109\/revisions"}],"predecessor-version":[{"id":6110,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/6109\/revisions\/6110"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6109"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6109"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6109"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}