Home Partners of America to suspend home purchases in 38 cities
“We evaluated several factors such as real estate price appreciation, state and local regulations and market demand to guide our investment plans to better serve consumers,” Home Partners said in an announcement. on its website. “We hope to resume home buying in these markets in the future.”
Blackstone, in a statement, said it and Home Partners continue to actively buy homes in more than 20 of the country’s fastest growing markets. “We are pausing in markets that represent less than 5% of our recent activity,” the company said.
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Home Partners, which operates in more than 80 markets, stands out from other large single-family landlords because it’s designed to give tenants a path to homeownership. Customers register for the program and, if approved, can submit homes they might like to buy. Home Partners buys the property for cash and then leases it to the client, who gets the right to buy the house at a pre-determined price.
Under the new policy, clients who have been approved but have not submitted a home by the deadline will be removed from the program and have their application fees refunded, according to the announcement.
Home Partners is not the first major investor to pull out of the US housing market, which reached a frenetic state in the first half of the year. Invitation Homes Inc., American Homes 4 Rent and KKR & Co.’s My Community Homes are among homeowners who have slowed down their purchases during a period of high home prices and rising financing costs.
Home Partners does not acquire homes in the Minneapolis-St. Paul suburbs of Champlin and Maple Grove, according to the company’s website. Earlier this year, both municipalities passed bylaws that made it more difficult for single-family homeowners to operate. The company continued to operate in other Twin Cities suburbs.
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