The year 2016 was an eventful one for home building.
Morgan Stanley: buying in bulk could ease U.S. housing crisis
Encouraging investors to buy foreclosed homes in bulk would help shrink the U.S. housing surplus, stabilize property prices and provide affordable rentals, Morgan Stanley housing analysts said in a report.
foreclosures, housing market, home prices, house prices
Encouraging investors to buy foreclosed homes in bulk would help shrink the U.S. housing surplus, stabilize property prices and provide affordable rentals, Morgan Stanley housing analysts said in a report, according to Bloomberg.
The collapse of the residential real estate market triggered the recession in 2007 and has stifled an economic recovery, according to the study. Incentives such as tax breaks and eased lending terms are needed to encourage more investors to purchase repossessed homes, repair them and rent the properties at affordable rates to people who can’t afford to buy a house, analysts led by Oliver Chang wrote.
“What’s important to do is help clear the backlog as quickly as possible with as little detriment to home prices as possible,” Chang, head of housing strategy in Morgan Stanley’s research division, said in a telephone interview with Bloomberg.
There are about 2.2 million vacant homes available for sale in the U.S., and 7.5 million homes facing foreclosure that would add to the excess housing supply, causing values to drop further, the Morgan Stanley analysts wrote.
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