The analysis gave Georgia the highest possible private equity risk score of 100 in its housing category, finding that from 2018 to 2022 about 17% of homes in the state were purchased by medium, large or “mega” investors — a more than 62% change over the same period. The group relied on data from CoreLogic and research from the Pew Charitable Trust to reach its housing scores.
Jordan Ash, housing director for the non-profit, said private equity interest means many U.S. consumers are being squeezed out of the market for new homes — a finding that mirrors the AJC investigation that analyzed tax assessor data across 11 metro Atlanta counties to identify every home purchased by investors that own more than 50 houses.
Institutional investment increases the likelihood of rent increases and poorly maintained homes, according to Ash.
Ash said corporate buyers were taking advantage of technology to swoop in and make all-cash offers for homes as soon as they hit the market, giving them an obvious advantage over the average consumer — another parallel finding to the AJC series.
“You can’t compete with the business model as an individual,” Ash said, adding that the problem is not unique to Georgia. “Housing has become viewed as an investment, rather than as meeting people’s basic needs.
“The impact has been to drive housing prices up everywhere.”
Those in the hunt for a home in the U.S. need to make about $114,000 a year to buy the typical house, according to a recent analysis by national real estate brokerage site Redfin. That is 35% more than the median household income of $84,000.
According to the most recent Zillow rental market data, the median rent in Atlanta is $2,075, slightly lower than the national median of $2,092. Earlier this year, the Harvard Joint Center for Housing Studies released a report finding that almost half of all renters are paying more than 30% of…
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