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IPFS News Link • Housing

The Other Shoe Drops: Blackstone Landlord Halts Home Purchases In 38 Cities As Market Crashes

• by Tyler Durden

We didn't have long to wait, because just after the close today, all those who had defended housing as backstopped by Wall Street's biggest firms and thus unlikely to crash, were suddenly silenced when Bloomberg reported that Home Partners of America, the single-family landlord owned by Blackstone, the largest residential and commercial landlord in the US, will stop buying homes in 38 US cities, becoming the latest institutional investor to back away from an overheated housing market.

The company, which was acquired by Blackstone in June 2021 for $6 billion, told customers that as of Sept. 1, it is pausing applications and property submissions in Boise, Idaho; Fresno, California; Memphis, Tennessee, and 25 other areas. The company will go on hiatus in 10 additional cities on Oct. 1 (incidentally, Boise, ID is the city which saw explosive price increases during the covid pandemic, and has since then seen an unprecedented plunge with Redfin reporting that a record 70% of home sellers had dropped their asking price in July).