A big Wall Street firm is betting that America is likely to become the United States of Renters.
On Thursday, private equity behemoth Blackstone announced a major merger of its own Invitation Homes Inc. with another company, Starwood Waypoint Homes. It’s the kind of news that makes most people’s eyes glaze over. But after the deal is done, Invitation Homes will be America’s biggest landlord of single-family homes, owning more than 82,000 houses, mostly in major cities like Chicago and Miami.
In plain speak, this means a top Wall Street company and a top real estate company think there’s a lot more money to be made renting property to Americans who either can’t afford to buy or don’t want to become homeowners.
“This merger creates the leading single-family rental company in the United States,” said Fred Tuomi, chief executive of Starwood Waypoint Homes. He called it a “win-win for both residents and stockholders.”
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