"It's gone from being good to being disturbing," says former Fannie Mae economist Thomas Lawler, of Wall Street's rush into the single-family landlord business as described by Bloomberg's Heather Perlberg and John Gittelsohn in a great read.
Blackstone (BX +0.1%) is clearly at the vanguard of the move, but it's joined by American Homes 4 Rent (AMH +0.5%), American Residential Properties (ARPI +0.1%), Silver Bay Realty Trust (SBY +0.2%), and a unit Colony Financial (CLNY +0.8%).
With easy and cheap access to capital, the Wall Street firms have become the gorillas in the single-family market, outbidding first-time homebuyers and maybe driving up prices towards another property bubble. And capital may be about to get even cheaper and easier thanks to Blackstone's recent raising of $479M through the securitization of rental payments on homes it owns. American Homes 4 Rent and Colony have their own securitizations in the works.