The Wall Street Journal, September 18 2020, Millions Are House-Rich but Cash-Poor. Wall Street Landlords Are Ready.
Since the COVID-19 pandemic, many homeowners have become “house rich but cash poor” due to the upsurge of home equity but reduced funds to maintain payments. This could lead homeowners to sell while prices are high and flee the comfort of home ownership.
Americans with mortgages have accumulated nearly $10 trillion in home equity thanks to a decade of rising home prices. Yet millions of them have fallen behind on mortgage payments and risk losing their houses.
It is a potential bonanza for rental-home investors. Since the coronavirus pandemic began, big single-family landlords have raised billions of dollars for homebuying sprees.
Even if there isn’t a surge in repossessed homes to buy cheaply off the courthouse steps—which led to the emergence of Wall Street’s landlords during the foreclosure crisis a decade ago—there is likely to be a lot of forced sales and new renters.