New Neighbors?

Listing of the week
📍47 LAKEVEIW AVE W, CORTLANDT MANOR, NY 10567

I had the pleasure of hosting an open house for this property on sunday.
🧼 4 bed - 2.5 bath on 1 acre of private woodlands.
🏡 Built in 1966, this contemporary home features a 2 car garage, freshly painted interior & exterior, walk-out basement access, and a bright, open-concept floor plan. Community access to a 20-acre private lake.
💧Utilities & features: oil above ground, municipal water, septic, central a/c, forced hot air, electric stand-alone hot water, upgraded attic insulation, new washer/dryer/dishwasher, recent roof.
💰 by the numbers: listing price - $725,000, taxes - $15,019 w/o STAR.

DEVELOPMENT GOING UP
📍41-51 MAPLE ST, CROTON-ON-HUDSON, NY 10520

if you drive to croton-harmon train station you have likely passed this construction project.
here are the details:
🦺 2 new buildings, 33 total rental apartments
(11 1-bed, 11 2-bed, & 11 3-bed units)
🧾 all apartments are affordable to individuals/families with 30-80% of ami (area median income) for westchester county
⏱ expected completion: may 2024
🔨 developer: Regan construction corp

WALL ST IS BUYING HOMES?
🏡 IS YOUR NEW NEIGHBOR BLACKSTONE?

be forewarned…this next section is number heavy.
you may have heard…fortune 500 companies are buying up residential real estate homes like their candy.
one of the names in circulation is blackstone - the world’s largest alternative asset manager with ~ $890 billion under management.
🏦 according to their own website - “Blackstone owns approximately 0.03% of single-family homes in the u.s. More broadly, institutional owners of single-family rentals own only 0.4%.”
Statista states there are 82 million single-family houses in the u.s.
SOOOOOOOO
Blackstone’s .03% is 2.46 MILLION HOMES.
📈 the source that sparked this information frenzy is metlife investment management. their 2022 forecast stated that 40% of single-family rentals could be owned by institutions by 2030.
the single-family rental market (current homes available to renters) -about 20 MILLION HOMES- is much different than the total single-family market- 82 MILLION HOMES.
if metlife’s forecast proves true, that would be another 7 MILLION HOMES that become institution-owned over the next decade.
but the talk on the street that 40% of the total single-family market- 32 MILLION HOMES- will be owned by institutions? i find that unlikely.
There is a lot of chatter that the largest 3 asset managers- blackrock (not to be confused with blackstone), vanguard, & state street- are also scooping up single-family residential homes.
in fact, it seems blackrock even added a webpage to state their intentions in the u.s. housing market. They claim they solely “provide capital for mortgages” and “provide capital for new housing construction" but they “are not among the institutional investors buying single-family homes.”
however, if blackrock decides to allocate their entire 9 trillion in aum (assets under management) portfolio into the u.s. housing market, they would be holding a nearly 20% stake in the $45 trillion u.s. housing market.
in conclusion… yes, wall st is buying homes. and blackstone may be your new neighbor.
but, the real question is…are the largest asset managers really buying up single family homes?
back with more on that next monday.