Major investors with lots of cash are scooping up foreclosed homes and converting them into rental properties. In Riverside, California — an area hard hit by the housing crisis — one company is buying up five to seven foreclosed homes every day. Warren Buffett says rentals are much more profitable than stocks, and he'd like to buy up "a couple hundred thousand homes." Prices are way down, mortgage credit is hard to get and the time is right to out-bid individual families. Will traditional, first-time home-buyers have a chance against private equity funds? Will home ownership be possible for fewer and fewer Americans?
This story was informed in part from sources in the Public Insight Network. To find out more, see our website, http://www.kcrw.com/insight.
Motoko Rich, New York Times (@motokorich)
Barry Zigas, Consumer Federation of America (@zigassoc)
Sharon Kinlaw, Fair Housing Council of the San Fernando Valley
Rick Sharga, Carrington Holdings (@ricksharga)
Cheryl Russell, New Strategist Publications (@TrendCop)