Sanyatti
Member
Investors bought 1 in 5 homes in Boston area with no intention of living in them
*Investors bought 1 in 5 homes in Boston area with no intention of living in them.*
In Boston, the dream of homeownership is a reality for some but appears unattainable for many due to a growing impediment, according to recent research. The Metropolitan Area Planning Council (MAPC) reveals a notable barrier to homeownership, highlighting that *one in five properties in Greater Boston was sold to an investor* between 2004 and 2018.
Jessie Partridge Guerrero, Interim Director of Data Service at MAPC, emphasized that investors, defined as LLCs, individuals purchasing three or more properties in five years, or those acquiring buildings with four or more units, play a significant role. The research indicates that investors often use cash to make purchases, secure homes at a discount, or engage in profitable flipping.
Guerrero notes that investor activity is most prevalent in lower-income communities of color, where they leverage cash to acquire naturally affordable housing, making their offers more appealing to sellers. She highlights the adverse impact on tenants, citing instances where investors issue eviction notices or implement substantial rent hikes, rendering existing residents unable to afford to stay.
Investors frequently target densely populated urban areas with lower-priced homes, often inhabited by immigrant or minority populations. Cash transactions sometimes result in deals up to $100,000 less than what mortgage-dependent buyers can secure, posing a challenge for first-time and low- to moderate-income homebuyers seeking affordable properties.
MAPC is set to present its findings in a webinar, proposing strategies to discourage speculative buying by investors and exploring avenues to generate revenue from such transactions. The generated funds could be directed towards initiatives aimed at creating more affordable housing options.
*Investors bought 1 in 5 homes in Boston area with no intention of living in them.*
In Boston, the dream of homeownership is a reality for some but appears unattainable for many due to a growing impediment, according to recent research. The Metropolitan Area Planning Council (MAPC) reveals a notable barrier to homeownership, highlighting that *one in five properties in Greater Boston was sold to an investor* between 2004 and 2018.
Jessie Partridge Guerrero, Interim Director of Data Service at MAPC, emphasized that investors, defined as LLCs, individuals purchasing three or more properties in five years, or those acquiring buildings with four or more units, play a significant role. The research indicates that investors often use cash to make purchases, secure homes at a discount, or engage in profitable flipping.
Guerrero notes that investor activity is most prevalent in lower-income communities of color, where they leverage cash to acquire naturally affordable housing, making their offers more appealing to sellers. She highlights the adverse impact on tenants, citing instances where investors issue eviction notices or implement substantial rent hikes, rendering existing residents unable to afford to stay.
Investors frequently target densely populated urban areas with lower-priced homes, often inhabited by immigrant or minority populations. Cash transactions sometimes result in deals up to $100,000 less than what mortgage-dependent buyers can secure, posing a challenge for first-time and low- to moderate-income homebuyers seeking affordable properties.
MAPC is set to present its findings in a webinar, proposing strategies to discourage speculative buying by investors and exploring avenues to generate revenue from such transactions. The generated funds could be directed towards initiatives aimed at creating more affordable housing options.