Wall Street investors are bullish that more Americans will choose to be renters, and they’re buying up even more homes to make sure they are ahead of the trend. The number of homes purchased by major investors in 2017 was about 29,000, up 60 percent from the previous year, according to real estate investment firm, Amherst Capital Management LLC.

This rise is eye-catching because wall street is banking on rentals to increase so much that they are willing to invest thousands of dollars into residential real estate. That is also the first time since 2013 that investors purchased more homes on an annual basis.

Investors are increasingly eyeing single-family homes over apartments. A rising number of apartments in recent years have increased vacancies and driven down rental yields. Investors are reportedly raising billions of dollars to purchase more homes this year, and they are targeting areas like Atlanta, Phoenix, and other metros with fast-growing real estate economies.

Pretium Partners LLC, an investment firm, announced Monday that it had raised more than $1 billion for its Progress Residential to add 26,000 rental homes to its portfolio. With the rising cost of homes all around the country, investment firms are seeing the shift to renting instead of buying.

In markets where there is little inventory to buy, some investors are building new. Transcendent Investment Management LLC , a south Florida firm, has secured more than $250 million to build thousands of rental homes in Southeast Florida. With new homes being built for rent, we may see an even bigger increase in the amount of people who rent instead of buy. This may also, lead more sellers into taking their listing off the market and put the house up for rent.

Investors are also targeting wealthier tenants for single-family home rentals. They tend to have children and need more bedrooms than apartments can offer, and they also may be more willing to pay a higher rent to stay in a nicer school district.

Kurt Galitski

Meet Kurt Galitski - The Kurt Real Estate Group, your new best friend. Distinctive Strategies that Deliver Record-Setting Results. When you combine Kurt’s passion and knowledge of the real estate market, you really gain an appreciation for what makes Kurt different. But what truly sets him apart from the crowd are his 5 distinctive strategies and his property management… For Kurt, getting into real estate was not an accident, it was a deliberate and calculated decision to deliver a better experience to home buyers, sellers, and landlords that they have ever received before. Today, you could ask any one of hundreds of clients, read his Yelp reviews, or look at his track record of being featured in Orange Coast Magazine in excess of eight consecu­tive years and you too will say mission accomplished. www.KurtRealEstate.com www.KurtPropertyManagement.com 877-957-6677

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