{"668784":{"#nid":"668784","#data":{"type":"news","title":"Investors Force Black Families Out of Home Ownership, New Research Shows","body":[{"value":"\u003Cp\u003E\u003Cspan\u003E\u003Cspan\u003EInvestors have been buying houses at a steady rate since the last recession, but how much does it affect availability in the housing market? New research from the Georgia Institute of Technology shows investors are most likely to push out Black, middle-class homeowners from neighborhoods.\u003C\/span\u003E\u003C\/span\u003E\u003C\/p\u003E\r\n\r\n\u003Cp\u003E\u003Cspan\u003E\u003Cspan\u003EData from\u003Cspan\u003E\u003Cspan\u003E 800 neighborhoods in the Atlanta metropolitan area between 2007 and 2016 \u003C\/span\u003E\u003C\/span\u003Erevealed that major investors bought homes in majority-minority neighborhoods far from downtowns and in lower-income areas. These homes were often undervalued because of their minority populations, but they remained desirable and offered good market value. \u003C\/span\u003E\u003C\/span\u003E\u003C\/p\u003E\r\n\r\n\u003Cp\u003E\u003Cspan\u003E\u003Cspan\u003EThe neighborhoods where investors bought up real estate were predominantly Black, effectively cutting Black families out of home ownership. Collectively, Black people lost more than $4 billion in home equity over a 10-year period because of investors, according to the research. \u003C\/span\u003E\u003C\/span\u003E\u003C\/p\u003E\r\n\r\n\u003Cp\u003E\u003Cspan\u003E\u003Cspan\u003E\u201cThat $4 billion refers to the home values that would have gone to individual homebuyers if these large institutional investment firms hadn\u2019t purchased those properties,\u201d said \u003Ca href=\u0022https:\/\/www.brian-y-an.com\/\u0022\u003EBrian An\u003C\/a\u003E, assistant professor in the \u003Ca href=\u0022https:\/\/spp.gatech.edu\/\u0022\u003ESchool of Public Policy\u003C\/a\u003E. \u201cThis is a very conservative, lower estimate than what the actual effect probably is.\u201d\u003C\/span\u003E\u003C\/span\u003E\u003C\/p\u003E\r\n\r\n\u003Cp\u003E\u003Cspan\u003E\u003Cspan\u003E\u003Cspan\u003E\u003Cspan\u003E\u003Cspan\u003E\u003Cspan\u003E\u003Cspan\u003EAn presented his findings in the paper, \u201c\u003C\/span\u003E\u003C\/span\u003E\u003C\/span\u003E\u003C\/span\u003E\u003Cspan\u003E\u003Ca href=\u0022https:\/\/journals.sagepub.com\/doi\/10.1177\/0739456X231176072\u0022\u003E\u003Cspan\u003E\u003Cspan\u003EThe Influence of Institutional Single-Family Rental Investors on Homeownership: Who Gets Targeted and Pushed Out of the Local Market?\u003C\/span\u003E\u003C\/span\u003E\u003C\/a\u003E\u003C\/span\u003E\u003Cspan\u003E\u003Cspan\u003E\u003Cspan\u003E\u003Cspan\u003E,\u003C\/span\u003E\u003C\/span\u003E\u003C\/span\u003E\u003C\/span\u003E\u003Cspan\u003E\u003Cspan\u003E\u003Cspan\u003E\u003Cspan\u003E\u201d published in the \u003Cem\u003EJournal of Planning Education and Research\u003C\/em\u003E in June.\u003C\/span\u003E\u003C\/span\u003E\u003C\/span\u003E\u003C\/span\u003E\u003C\/span\u003E\u003C\/span\u003E\u003C\/span\u003E\u003C\/p\u003E\r\n\r\n\u003Cp\u003E\u003Cstrong\u003E\u003Cspan\u003E\u003Cspan\u003E\u003Cspan\u003E\u003Cspan\u003E\u003Cspan\u003E\u003Cspan\u003EThe Shrinking Homebuyer Market\u003C\/span\u003E\u003C\/span\u003E\u003C\/span\u003E\u003C\/span\u003E\u003C\/span\u003E\u003C\/span\u003E\u003C\/strong\u003E\u003C\/p\u003E\r\n\r\n\u003Cp\u003E\u003Cspan\u003E\u003Cspan\u003E\u003Cspan\u003E\u003Cspan\u003E\u003Cspan\u003E\u003Cspan\u003E\u003Cspan\u003EOwning a home is one of the main ways for the American middle class to accumulate wealth. Despite this, home ownership declined by 5.5.% between 2007 and 2016. Who owns these homes is even more divided based on race. \u003Cspan\u003EFrom 2015 to 2019, homeownership among Black families in the U.S. was 41.7% and for white families 71.7%.\u003C\/span\u003E\u003C\/span\u003E\u003C\/span\u003E\u003C\/span\u003E\u003C\/span\u003E\u003C\/span\u003E\u003C\/span\u003E\u003C\/span\u003E\u003C\/p\u003E\r\n\r\n\u003Cp\u003E\u003Cspan\u003E\u003Cspan\u003E\u003Cspan\u003E\u003Cspan\u003E\u003Cspan\u003E\u003Cspan\u003E\u003Cspan\u003E\u003Cspan\u003ESimultaneously, large private investment firms started buying single-family homes often to flip the houses and rent them at higher rates. Although smaller investment groups often buy homes, the major impact on the market comes from large private institutions. \u003C\/span\u003E\u003C\/span\u003E\u003C\/span\u003E\u003C\/span\u003E\u003C\/span\u003E\u003C\/span\u003E\u003C\/span\u003E\u003C\/span\u003E\u003C\/p\u003E\r\n\r\n\u003Cp\u003E\u003Cspan\u003E\u003Cspan\u003E\u003Cstrong\u003EAnalyzing the Data\u003C\/strong\u003E\u003C\/span\u003E\u003C\/span\u003E\u003C\/p\u003E\r\n\r\n\u003Cp\u003E\u003Cspan\u003E\u003Cspan\u003EInvestors have long been suspected of buying up substantial portions of the housing market, but determining just how many has been challenging. An used transaction data like buyer names and mailing addresses to determine who property owners were. With a natural language processing tool called OpenRefine that cleans and clusters messy textual data, he combed through millions of observations. \u003C\/span\u003E\u003C\/span\u003E\u003C\/p\u003E\r\n\r\n\u003Cp\u003E\u003Cspan\u003E\u003Cspan\u003EAn then analyzed the data with the Herfindahl\u2013Hirschman Index (HHI), a measure of market concentration that can determine the diversity of buyers. \u003C\/span\u003E\u003C\/span\u003E\u003C\/p\u003E\r\n\r\n\u003Cp\u003E\u003Cspan\u003E\u003Cspan\u003E\u201cIt means how many properties they are purchasing in one neighborhood,\u201d An said. \u201cFor example, let\u0027s say there were 500 purchases in the year for single-family houses, then essentially, how many are these large investment firms collectively purchasing? If it\u2019s 500, that is low HHI, meaning a lower market concentration. If it\u2019s only two firms, that\u2019s an extremely high market concentration.\u201d \u003C\/span\u003E\u003C\/span\u003E\u003C\/p\u003E\r\n\r\n\u003Cp\u003E\u003Cspan\u003E\u003Cspan\u003E\u003Cspan\u003E\u003Cspan\u003EUsing these methods and measures, An showed that, on average, neighborhoods experienced an increase of large investor purchases from nearly 0% in 2007 to over 12% in the peak year, 2013. Investors acquired up to 76% of for-sale, single-family homes in some neighborhoods. \u0026nbsp; \u003C\/span\u003E\u003C\/span\u003E\u003C\/span\u003E\u003C\/span\u003E\u003C\/p\u003E\r\n\r\n\u003Cp\u003E\u003Cspan\u003E\u003Cspan\u003E\u003Cspan\u003E\u003Cspan\u003EInstitutional investments primarily affected Black families, according to one of An\u2019s models. Results indicated this negative effect is much worse for Black homeownership and totally absent for white homeownership. Whether this is because investment firms mostly purchase in Black neighborhoods or if Black homeowners are specifically targeted is unclear. Regardless of the reasoning, large investors decrease homeownership for anyone in areas they buy out, but especially for Black people. \u003C\/span\u003E\u003C\/span\u003E\u003C\/span\u003E\u003C\/span\u003E\u003C\/p\u003E\r\n\r\n\u003Cp\u003E\u003Cspan\u003E\u003Cspan\u003E\u201cReal estate industry stakeholders say these big firms own no more than 3% of total single-family housing stock in the United States, so there is no way that they can suppress home ownership more,\u201d An said. \u201cBut if you look at the neighborhood dynamics, there is a lot more concentration in certain neighborhoods that really drives down home ownership.\u201d\u003C\/span\u003E\u003C\/span\u003E\u003C\/p\u003E\r\n\r\n\u003Cp\u003E\u0026nbsp;\u003C\/p\u003E\r\n\r\n\u003Cp\u003E\u003Cspan\u003E\u003Cspan\u003E\u003Cspan\u003E\u003Cspan\u003EAn, B.Y. (2023). The Influence of Institutional Single-Family Rental Investors on Homeownership: Who Gets Targeted and Pushed Out of the Local Market?\u0026nbsp;\u003Cem\u003EJournal of Planning Education and Research\u003C\/em\u003E,\u0026nbsp;\u003Cem\u003E0\u003C\/em\u003E(0).\u0026nbsp;\u003C\/span\u003E\u003C\/span\u003E\u003Ca href=\u0022https:\/\/doi.org\/10.1177\/0739456X231176072\u0022\u003E\u003Cspan\u003Ehttps:\/\/doi.org\/10.1177\/0739456X231176072\u003C\/span\u003E\u003C\/a\u003E\u003C\/span\u003E\u003C\/span\u003E\u003C\/p\u003E\r\n","summary":"","format":"limited_html"}],"field_subtitle":"","field_summary":[{"value":"\u003Cp\u003E\u003Cspan\u003E\u003Cspan\u003EData from\u003Cspan\u003E\u003Cspan\u003E 800 neighborhoods in the Atlanta metropolitan area between 2007 and 2016 \u003C\/span\u003E\u003C\/span\u003Erevealed that major investors bought homes in majority-minority neighborhoods far from downtowns and in lower-income areas. These homes were often undervalued because of their minority populations, but they remained desirable and offered good market value. \u003C\/span\u003E\u003C\/span\u003E\u003C\/p\u003E\r\n","format":"limited_html"}],"field_summary_sentence":[{"value":"New research from the Georgia Institute of Technology shows investors are most likely to push out Black, middle-class homeowners from neighborhoods."}],"uid":"34541","created_gmt":"2023-08-07 19:10:20","changed_gmt":"2023-08-08 17:33:20","author":"Tess Malone","boilerplate_text":"","field_publication":"","field_article_url":"","dateline":{"date":"2023-08-07T00:00:00-04:00","iso_date":"2023-08-07T00:00:00-04:00","tz":"America\/New_York"},"extras":[],"hg_media":{"671329":{"id":"671329","type":"image","title":"Home buying getty","body":null,"created":"1691435619","gmt_created":"2023-08-07 19:13:39","changed":"1691437015","gmt_changed":"2023-08-07 19:36:55","alt":"Buyers walking into house","file":{"fid":"254360","name":"GettyImages-1347125073.jpg","image_path":"\/sites\/default\/files\/2023\/08\/07\/GettyImages-1347125073.jpg","image_full_path":"http:\/\/www.tlwarc.hg.gatech.edu\/\/sites\/default\/files\/2023\/08\/07\/GettyImages-1347125073.jpg","mime":"image\/jpeg","size":7711717,"path_740":"http:\/\/www.tlwarc.hg.gatech.edu\/sites\/default\/files\/styles\/740xx_scale\/public\/2023\/08\/07\/GettyImages-1347125073.jpg?itok=w1ve31Oe"}},"671333":{"id":"671333","type":"image","title":"map","body":"\u003Cp\u003ELarge corporate investment concentration 2013\u003C\/p\u003E\r\n","created":"1691438106","gmt_created":"2023-08-07 19:55:06","changed":"1691438856","gmt_changed":"2023-08-07 20:07:36","alt":"Large corporate investment concentration 2013","file":{"fid":"254365","name":"Figure 3b_Large Corporate Purchases 2013.jpg","image_path":"\/sites\/default\/files\/2023\/08\/07\/Figure%203b_Large%20Corporate%20Purchases%202013.jpg","image_full_path":"http:\/\/www.tlwarc.hg.gatech.edu\/\/sites\/default\/files\/2023\/08\/07\/Figure%203b_Large%20Corporate%20Purchases%202013.jpg","mime":"image\/jpeg","size":2232860,"path_740":"http:\/\/www.tlwarc.hg.gatech.edu\/sites\/default\/files\/styles\/740xx_scale\/public\/2023\/08\/07\/Figure%203b_Large%20Corporate%20Purchases%202013.jpg?itok=WlMrhhqB"}}},"media_ids":["671329","671333"],"groups":[{"id":"1214","name":"News Room"},{"id":"1188","name":"Research Horizons"}],"categories":[],"keywords":[{"id":"187915","name":"go-researchnews"}],"core_research_areas":[{"id":"39511","name":"Public Service, Leadership, and Policy"}],"news_room_topics":[{"id":"71901","name":"Society and Culture"}],"event_categories":[],"invited_audience":[],"affiliations":[],"classification":[],"areas_of_expertise":[],"news_and_recent_appearances":[],"phone":[],"contact":[{"value":"\u003Cp\u003ETess Malone, Senior Research Writer\/Editor\u0026nbsp;\u003C\/p\u003E\r\n\r\n\u003Cp\u003E\u003Ca href=\u0022mailto:tess.malone@gatech.edu\u0022\u003Etess.malone@gatech.edu\u003C\/a\u003E\u003C\/p\u003E\r\n","format":"limited_html"}],"email":[],"slides":[],"orientation":[],"userdata":""}}}