Wall Street Landlords Face Political Risk, Offering 30% Home Discount
A proposed bill aimed at restricting the activities of large housing investors has created a unique investment opportunity for those willing to accept political risk. Major Wall Street landlords, specifically Invitation Homes and American Homes 4 Rent, which collectively own approximately 140,000 single-family homes, are seeing their stock prices trade significantly below the value of their underlying assets. According to real estate research firm Green Street, this regulatory threat allows investors to acquire U.S. home portfolios at a discount of up to 30%. While banning these institutional investors is popular among voters, the market reaction suggests that the fear of eviction from certain housing markets has depressed share values, presenting a potential value play for risk-tolerant capital.
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Wall Street Landlords Face Political Risk, Offering 30% Home Discount
A proposed bill aimed at restricting the activities of large housing investors has created a unique investment opportunity for those willing to accept political risk. Major Wall Street landlords, specifically Invitation Homes and American Homes 4 Rent, which collectively own approximately 140,000 single-family homes, are seeing their stock prices trade significantly below the value of their underlying assets. According to real estate research firm Green Street, this regulatory threat allows investors to acquire U.S. home portfolios at a discount of up to 30%. While banning these institutional investors is popular among voters, the market reaction suggests that the fear of eviction from certain housing markets has depressed share values, presenting a potential value play for risk-tolerant capital.
WSJ.com: Economy