Within the Charlotte MSA, large investors are defined as investors who made at least 11 purchases in that area in 20.Īerial imagery of Bradfield Farms is from the National Agriculture Imagery Program via the U.S. They do not include personal trusts however, LLCs used to purchase houses on behalf of individuals would appear as investors in the data.Īll city-level statistics are based on metropolitan statistical areas (MSA), and are geographically larger than a city’s official limits. Investors are any buyers that are companies, LLCs, corporations and other entities. Home sales include single-family houses, condos and townhouses. Home sales data come from ATTOM, a property data analytics company that collects and consolidates property data from across the country. Enos, 62, the real estate agent, sold her Bradfield Farms home two years ago, she was adamant that she would not sell to an investor.
They think these homes are going to be worth more in the future,” he added. Among the investors are pension funds and mutual funds, which “see it as a good bet,” Mr. Wall Street investors turned the single-family rental home into a powerful investment tool by bundling multiple purchases into portfolios available for investment.
“We’ve had the emergence of an industry,” said Jade Rahmani, a real estate finance analyst at Keefe, Bruyette & Woods. Their presence has professionalized a mom-and-pop sector. Nationwide, institutional investors own 3.8 percent of the country’s 15.1 million single-family rentals, but in Charlotte, they own 20 percent, according to an April report by the Urban Institute. They worry that a neighborhood “could enter a self-reinforcing downward spiral if all the investors head for the exit at the same time or default en masse,” said Greg McBride, the chief financial analyst for .īradfield Farms, a 34-year-old community of about 1,000 homes on the edge of Charlotte, N.C., has been rattled by a spike in investor home purchases. Lenders are often hesitant to underwrite mortgages in communities with a large share of investor-owned properties, potentially making it harder to sell. Once investors own more than a third of the homes, reaching the voting threshold could prove impossible. The homeowners association needs a two-thirds supermajority to amend its bylaws. Johnson, a retired computer security worker whose olive green house has an American flag flying on the garage door and a “Thank You, Jesus” sign on the walkway, went door to door in the North Carolina heat in the summer of 2022, urging her neighbors to vote to cap the number of rentals at 25 percent of the homes in the community, and to require homeowners to live in their home for a year before renting it. Now, 41 percent of the homes there are corporate-owned, single-family rentals. Nikki Sloup, a Progress Residential spokeswoman, said in an email that the company “responded to and completed all work orders,” sending out multiple technicians.Ī decade ago, Becky Johnson, 71, didn’t know of any rentals on her street. He’d come and look at it in the day.”īy contrast, she has waited five or six days for a Progress technician to arrive after submitting work orders for repairs to a blocked dryer vent and a leaking shower. “He didn't go through a property management company. “My last landlord addressed problems within 24 hours,” she said. When a neighbor cleaned her gutters unprompted, she thanked him with a cheesecake.īut her landlord, Progress Residential, has been slow to make repairs, Ms. Barber moved into the house in December 2021, her neighbors left cookies, cards and flowers on her doorstep. “I’m a country girl,” she said, standing on her lawn one steamy afternoon, a “Home Sweet Home” sign on her walkway and bags of fresh mulch in the flower beds. Tarchia Barber liked the rural feel of Bradfield Farms, with cul-de-sacs and shady streets surrounded by farmland and woods. While her neighbors have given her a warm welcome, her landlord has raised the rent. Tarchia Barber chose to rent in Bradfield Farms because of the neighborhood’s rural feel.
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