For years now, investors have purchased existing homes to rent them out. Now they’re building new ones for the same purpose, The New York Times reports.

The play allows investors and homebuilders to capitalize on recovering home prices and cater to a large pool of renters who, if not for tight lending and economic conditions, might have bought homes in the past, according to The Times.

In the last year, institutional investors have repeatedly grabbed headlines in their efforts to tap renters keen on leasing houses instead of apartments. Blackstone alone purchased 20,000 homes valued at about $3 billion in just a year.

Source: The New York Times

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