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Wall Street’s New Suburban Subdivision Is Full of Renters

  • Institutional money is pouring into single-family rentals
  • Demand for housing, affordability issues fuel industry
A development built by American Homes 4 Rent in Lake Stevens, Washington
A development built by American Homes 4 Rent in Lake Stevens, WashingtonSource: American Homes 4 Rent
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Wall Street won big buying up homes during the foreclosure crisis and renting them out. Now, it’s headed back to the suburbs in hopes of scoring again.

With the pandemic driving demand for larger living spaces, institutional investors are pouring money into single-family rentals. In addition to buying houses on the open market, they’re bankrolling subdivisions -- inventing a new kind of suburban living that’s easier to afford, but where the financial benefits of homeownership go to Wall Street firms.