The Nation recently came out with a report about rental backed securities. If you're a property owner or renter in Phoenix, this is something that you need to know. The Private Equity firm Blackstone is now a property manager under the name of Invitation Homes. They've now created an investment product that is basically a collection of rental homes. They own groups of homes in Atlanta, Chicago, Jacksonville, Charlotte, and Phoenix.
Why should we be concerned about this? These rental backed securities are similar to the mortgage backed securities that sparked the last housing crisis and economic recession. There have been reports of improper evictions as well as poor property management practices. Most concerning about this trend is the economic impact on the rest of us. Home prices are increasing without the demand, and home ownership rates are dropping. Some experts worry that this could create another housing bubble in the future.