Investors are spurred by high demand for housing, rising rents and soaring home values, making it a lucrative business. “More and more rental properties are coming to be owned not by individuals, but by companies, by business entities.’’ “It’s becoming more prevalent in Massachusetts and everywhere,” said Adam Travis, a Harvard doctoral candidate studying rental housing and the private market. Investors - whether buying with cash or backed with bank loans - are playing an increasingly large role in Massachusetts’ housing market. Rates of investor purchases in two and three-family homes are even higher.īusiness entities purchasing single- to three-family homes in Massachusetts, 2016-2021 Investors and other businesses - the majority of them limited liability companies - spent more than $5.6 billion last year in Massachusetts purchasing these properties, the majority in cash, to rent or flip as the state’s housing market rises. That’s nearly double the rate of such purchases a decade ago, according to a GBH News analysis of data provided by the Warren Group, a real estate data analysis firm. In 2021, business entities purchased nearly 6,600 single-family homes across the state, more than 9 percent of all single-family homes sold. The change of ownership from a local resident to a group of investors is increasingly common across Massachusetts - from the cash-strapped neighborhoods of Springfield to tony neighborhoods in Newton and Nantucket, the GBH News Center for Investigative Reporting has found. “The worst thing was how I felt and how I was treated. Thompson lives about 20 miles away in a rental unit, still hurt over how she was treated by new owners. Now the house is owned by a limited liability company called Ruby Realty, LLC, whose owners manage hundreds of rental units in western Massachusetts. Christine Thompson lived in a cozy three-bedroom, single-family house on a quiet residential street in Springfield for more than 50 years.īut in January, the 72-year-old widow was forced to move out after the unexpected death of her husband left her in financial ruin, leading to a foreclosure auction.
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