Institutional firms are pulling back from the U.S. housing market

[mahatmakanejeeves]

FINANCE HOUSING

Institutional firms are pulling back from the U.S. housing market—just look at Starwood’s decision to shop 2,000 single-family rentals

https://fortune.com/2023/06/18/housing-market-loses-appeal-for-wall-street-type-home-buyer/amp/

The financial return on each additional home added just isn't that great right now.

BY LANCE LAMBERT
June 18, 2023 5:25 PM EDT

Starwood Capital CEO Barry Sternlicht doesn’t hold back on his Federal Reserve criticism: On multiple occasions he’s told CNBC anchors that the central bank’s aggressive interest rate hikes could soon spur a deep recession.

It’s easy to see why Sternlicht is so openly critical of the Fed: Starwood primarily invests in real estate, where the Fed’s interest rate hikes have already caused a great deal of economic pain.

{snip}

[bottomofthehill]

1. That's great, after years of driving the price up, they are pulling out to set the crash.

How very helpful of them.

[Think. Again.]

3. Hopefully...

...if the new construction sector picks up a bit, we can get back to a more sane situation where it isn't a crazy idea that average folks can own average homes.

[PSPS]

2. I think this is good news. Their dominance in the residential market (buy and rent out) is a problem

Of course, they throw out the old "recession" canard. There is no such thing as a recession with low unemployment.Maybe they mean a recession in their CEO's paycheck. If they were to sell, that would tend to lower prices and make it easier for people to actually buy a home instead of rent.

[Warpy]

4. Really? I got my last come-on from them four days ago

FWIW, I unloaded the house in April.