Starwood Property Trust has purchased 151 homes in Las Vegas for $58.2 million, marking a significant investment in the local housing market.
These homes are scattered all over the valley, with a bunch in North Las Vegas, Henderson, and some in the southwest and northwest areas. Starwood, based in Greenwich, Connecticut, is a big player in the rental market, owning properties all over the country.
They didn’t comment on the purchase, but Invitation Homes will manage some of these new properties. Just last year, Starwood sold 264 homes in the valley for $98 million to Invitation Homes in a bigger deal.
This trend of big investors snapping up homes isn’t just happening here. It’s a nationwide thing, with companies turning these houses into rentals. American Homes 4 Rent is another player, owning around 2,000 properties in the county, mostly in North Las Vegas.
In fact, Las Vegas saw a whopping 27.6% jump in investor purchases last year, the highest in the country. Investors bought over $1 billion worth of homes in just the third quarter, making up nearly 23% of all home sales.
Since 2009, Wall Street firms and cash-rich investors have been buying single-family homes, which is making it tougher for regular folks to find affordable housing. A study suggests these companies could own nearly 40% of U.S. homes by 2030.
Local politicians are starting to take notice. U.S. Rep. Dina Titus expressed concern about these investment firms buying homes that should be for families. She’s looking into legislative options to make housing more accessible in Southern Nevada.
Another rep, Steven Horsford, is pushing for the HOME Act to protect renters and buyers from price hikes by these big investors. He’s calling for more transparency and accountability in the housing market, especially since these bulk purchases often target vulnerable communities.
With the political landscape shifting, there’s talk of bipartisan bills in Congress to tackle the growing influence of corporate investors in housing. It’s a hot topic, especially with the upcoming presidential election.
If you want to know more, you can reach out to Patrick Blennerhassett at the Review-Journal.
