Out-of-state investors that include three big private investment firms “swooped in” after the market for homes in the Tacoma, Wash., area bottomed out “and gobbled up single-family homes at an unprecedented rate,” an analysis by The News Tribune found.

The Blackstone Group, through subsidiary Invitation Homes, is the biggest buyer of single-family homes in Pierce County, followed by two other institutional investors, American Homes 4 Rent and FREO Washington.

Together, the three funds spent $172 million during the past year buying up nearly 1,000 properties in the county and turning them into rentals — about 1 in 10 home sales. In one instance, FREO bought almost an entire neighborhood — 31 homes — from a regional homebuilder.

Local investors say the sudden appearance of national investment funds in the market forced many local house flippers out of the business. As investment funds slow the pace of acquisitions, only “time will tell” if they will prove to be responsible landlords, or if they’ve helped create another housing bubble, The News Tribune’s Kathleen Cooper reports. Source: thenewstribune.com

Show Comments Hide Comments

Comments

Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
Success!
Thank you for subscribing to Morning Headlines.
Back to top
×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription