Wall Street-backed company purchases 151 homes in Las Vegas Valley
A real estate investment trust supported by Wall Street recently acquired 151 homes in the Las Vegas Valley in 2024, as indicated by property records. Starwood Property Trust purchased these properties in three separate transactions during October for a combined price of $58.2 million. Property records examined by the Las Vegas Review-Journal revealed that this trust, based in Greenwich, Connecticut and worth around $6.45 billion, specializes in owning rental homes nationwide. These homes bought are located in various areas throughout the Las Vegas Valley, with particular clusters in North Las Vegas, Henderson, and other parts of the valley.
Invitation Homes, confirmed that they would manage several of these homes. Previously, in 2023, Starwood sold 264 additional homes to Invitation Homes as part of a broader transaction involving multiple cities. This trend of large investors buying up residential properties has been gaining traction across the United States, with many companies focusing on long-term or permanent rental properties. One such company, American Homes 4 Rent, has amassed a substantial amount of nearly 2,000 properties in the county, with a significant portion situated in North Las Vegas.
Home investor purchases in Las Vegas surged by 27.6 percent the same year, surpassing other metropolitan areas like Seattle and San Jose. In the past quarter alone, investors spent more than $1 billion on homes, representing almost 23 percent of all home acquisitions. These acquisitions, according to studies, have led to a decreased availability of houses for regular families seeking to purchase a home. A MetLife Investment Management study forecasts that these kinds of companies could possess close to 40 percent of all U.S. homes by 2030.
Politicians like U.S. Rep. Dina Titus have expressed alarm over the actions of Wall Street companies and investors in the housing market. She mentioned that major investment firms are purchasing homes in Southern Nevada that might otherwise have gone to families. Through legislative action, she aims to make housing more accessible and affordable to families in the area. A study conducted by UNLV’s Lied Center for Real Estate demonstrated that investors, who have acquired more than five homes in the past decade, now own a significant portion of single-family homes in Clark County.
U.S. Rep. Steven Horsford has introduced the HOME Act in Congress, aiming to protect renters and buyers from price manipulation by large investors. He highlighted the impact of these bulk purchases on communities, particularly those of color, single mothers, and retirees. Stakeholders in the real estate sector are watching to see how the residential market evolves under the new administration. Several bipartisan bills are moving through Congress to address the escalating influence of corporate investors in the housing market. During the 2024 presidential election, JD Vance emphasized the need to tackle corporate investors due to their influence on the rental market.
