Blackstone bets $ 6 billion on buying and leasing homes – .

Blackstone bets $ 6 billion on buying and leasing homes – .

Blackstone Group Inc. has agreed to buy a company that buys and rents single-family homes under a $ 6 billion deal, a sign that Wall Street believes the US real estate market will stay warm.
The investment firm confirmed on Tuesday that it has reached an agreement to acquire Home Partners of America Inc., which owns more than 17,000 homes in the United States. Home Partners buys houses, rents them out and offers its tenants the option of buying eventually. The deal was reported earlier by the Wall Street Journal.
Home sales in the United States skyrocketed last year at their fastest pace in 14 years, when low mortgage rates and the rise in remote working during the pandemic prompted buyers to scramble for find larger living spaces.
The shortage of homes for sale relative to demand and record home prices have slowed the pace of home sales in recent months. But on a historical basis, the market remains hot, and analysts say demand from millennials entering their early years of home buying is expected to fuel demand for years to come.
The median price of existing homes exceeded $ 350,000 for the first time in May, the National Association of Realtors said on Tuesday. “This imbalance between supply and demand will not be corrected overnight,” said Kathleen McCarthy, Global Co-Director of Blackstone Real Estate.


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