Former real estate finance professional, here.
If you were hoping this was a sign of the real estate market falling and perhaps its your chance to get a bargain, think again.
> The company is seeking roughly $2.8 billion for the houses, which are being pitched to institutional investors, according to people familiar with the matter.
Institutional investors (Blackstone, Blackrock, Colony, et al) will be being in bulk, in cash, and at a steep discount before they even hit the market. Zillow's loss will be the institutional investor's gain. Of course, they will happily rent to you since that is the the plan all along - own all the assets, and every generation after X gets to rent [1].
I wish this would anger people more, but enough home owners will benefit from this dynamic - it will likely keep home prices elevated for longer, and set up an ugly conflict between those who do not have (and aspire to have) homes and those who currently own homes.
[1] https://www.ocregister.com/2021/09/30/in-a-hot-market-compan...
If you were hoping this was a sign of the real estate market falling and perhaps its your chance to get a bargain, think again.
> The company is seeking roughly $2.8 billion for the houses, which are being pitched to institutional investors, according to people familiar with the matter.
Institutional investors (Blackstone, Blackrock, Colony, et al) will be being in bulk, in cash, and at a steep discount before they even hit the market. Zillow's loss will be the institutional investor's gain. Of course, they will happily rent to you since that is the the plan all along - own all the assets, and every generation after X gets to rent [1].
I wish this would anger people more, but enough home owners will benefit from this dynamic - it will likely keep home prices elevated for longer, and set up an ugly conflict between those who do not have (and aspire to have) homes and those who currently own homes.
[1] https://www.ocregister.com/2021/09/30/in-a-hot-market-compan...