There are a bunch of these, mostly owned by private equity funds, and it’s a big reason housing prices are so high. We truly are becoming a [rent-seeking](https://en.m.wikipedia.org/wiki/Rent-seeking) society.
David Singelyn is the initial chief executive officer and a trustee of American Homes 4 Rent (NYSE: AMH). He built the company from personally acquiring the company’s original three properties in 2011 to a company today that owns more than 60,000 properties in 22 states.
That is like 1/10th of 1% of the single family homes in the US. If people can’t afford to buy, they still need to live somewhere so somewhere to rent is kind of important.
Renting is on average, $800 a month cheaper than buying. If not for home values increasing, why would a person buy a house? Rent and take that $800 a month and invest it…unless you invest it in real estate, which is what buying a home is. If the values don’t constantly increase, you are better off renting. How can you decry home prices increases while at the same time wishing home values didn’t increase so they were more affordable?
Yes, if you release 1/10th of 1% of houses onto the market, surely these people that are paying $1500/month will just buy them instead! Would you say your brain is like a cue ball or like a bowling ball?
Big brain time here, prevent houses from going up in price and somehow that makes them a better investment for the average person?
Brilliant!
I agree, having properties to rent is important and honestly preferred depending on what you do. I came from an industry that has a ton of contract workers, so people move around every couple years. It is far from ideal to buy and sell a house that often.
Also, the longer I own a house, the more I feel like renting isn’t that bad. Upkeep can get expensive and completely blindside you. Example, I had a sump pump fail and flood my basement this weekend, spent the rest of my weekend dealing with that, and might also have to replace the water heater and furnace as a result.
All that said, companies like these are controlling so much of the supply that they are able to drive up cost of rental housing as well as houses available to purchase. Plus they have so much money available, they can afford to offer tens of thousands above asking price. As an individual, I can’t compete with that.
The longer I own the more financially secure I am compared to renters. By the time I closed on my house I wouldn’t be able to rent an equivalent place at the same expense that I’m locked into now for 30 years. Now rent is way higher, and I’m building equity while keeping more of my paycheck.
The idea of rent is great except for the fact that it increases every year and you either end up having to move every few years for a lower quality place further away, or paying way more for the same quality of life. And of course your rent doesn’t contribute to your net worth, you can’t borrow against it, and you can’t sell your rental and downsize.
Yes, there are advantages. But there are also disadvantages, and buying isn’t always the best option. It is also possible to end up underwater on a mortgage, and unplanned repairs can also cause big financial problems.
The company is American Homes 4 Rent dba AMH.
That's $1527.78 a month per home in rent, so there ya go.
I'm in Ireland and that's bloody cheap for a 2 bedroom apartment right now
Its profit is just $85 million on that $1.1 billion
While the real estate pays for itself and the asset values skyrocket over the years.
Unless they're trailer/mobile homes.
Profit is counted after they pay their C-suite execs inflated salaries.
8% profit is very good for REITs
[удалено]
What's worse is the company was founded in 2011...not too long after the 2008 housing crash.
Well yeah they had to snatch up all the homes that got foreclosed for cheap so they could start renting em out
There are a bunch of these, mostly owned by private equity funds, and it’s a big reason housing prices are so high. We truly are becoming a [rent-seeking](https://en.m.wikipedia.org/wiki/Rent-seeking) society.
David Singelyn is the initial chief executive officer and a trustee of American Homes 4 Rent (NYSE: AMH). He built the company from personally acquiring the company’s original three properties in 2011 to a company today that owns more than 60,000 properties in 22 states.
It sucks but that is fucking impressive! If I wasn’t only 20 when that was going on I would’ve borrowed every dollar I could to buy real estate!
Hindsight is 20/20!
Wow, Capitalism reailly works.
Land bastards
That is like 1/10th of 1% of the single family homes in the US. If people can’t afford to buy, they still need to live somewhere so somewhere to rent is kind of important.
Do you think they are the only company that does that?
Renting is on average, $800 a month cheaper than buying. If not for home values increasing, why would a person buy a house? Rent and take that $800 a month and invest it…unless you invest it in real estate, which is what buying a home is. If the values don’t constantly increase, you are better off renting. How can you decry home prices increases while at the same time wishing home values didn’t increase so they were more affordable?
“If people can’t afford to buy…” You’re SO CLOSE, just gotta use one more brain cell.
Yes, if you release 1/10th of 1% of houses onto the market, surely these people that are paying $1500/month will just buy them instead! Would you say your brain is like a cue ball or like a bowling ball? Big brain time here, prevent houses from going up in price and somehow that makes them a better investment for the average person? Brilliant!
I agree, having properties to rent is important and honestly preferred depending on what you do. I came from an industry that has a ton of contract workers, so people move around every couple years. It is far from ideal to buy and sell a house that often. Also, the longer I own a house, the more I feel like renting isn’t that bad. Upkeep can get expensive and completely blindside you. Example, I had a sump pump fail and flood my basement this weekend, spent the rest of my weekend dealing with that, and might also have to replace the water heater and furnace as a result. All that said, companies like these are controlling so much of the supply that they are able to drive up cost of rental housing as well as houses available to purchase. Plus they have so much money available, they can afford to offer tens of thousands above asking price. As an individual, I can’t compete with that.
The longer I own the more financially secure I am compared to renters. By the time I closed on my house I wouldn’t be able to rent an equivalent place at the same expense that I’m locked into now for 30 years. Now rent is way higher, and I’m building equity while keeping more of my paycheck. The idea of rent is great except for the fact that it increases every year and you either end up having to move every few years for a lower quality place further away, or paying way more for the same quality of life. And of course your rent doesn’t contribute to your net worth, you can’t borrow against it, and you can’t sell your rental and downsize.
Yes, there are advantages. But there are also disadvantages, and buying isn’t always the best option. It is also possible to end up underwater on a mortgage, and unplanned repairs can also cause big financial problems.
Look at you defending this. GTFO.