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I don't know, seems pretty risky to me.

I recall in the 80s when Japanese investors were buying up tons of corporate real estate in the USA.  It caused a panic in the US with fears that Japan was going to own us all in a couple of decades.  Then the bottom dropped out of the market and Japanese investors were left with a massive amount of inventory worth half what they'd paid for it.

Seems like large scale corporate investment like that is almost certain to create a bubble, and when the bubble bursts, the corporate interests are inevitably going to suffer the consequences.

That's just my hypothesis though.  There are dudes on this board that know a lot more about real estate than I do.

I agree that it's risky. 

But bear in mind that they're not buying these houses hoping for house price appreciation. They're buying them for rental income. The plan isn't to try to resell them. 

So the risk is that the market readjusts and rents fall precipitously, not that the market readjusts and home prices fall. If home prices fall they're not going to be forced to sell. In fact if rents don't drop so much but prices do, they may use that to buy more inventory...

Rents pretty much must drop as home prices do, otherwise landlords start losing their tenants as they become homebuyers.

So it's still a risk to the corporate investor, if the bubble bursts and rents drop below their costs, they're losing money.

Ask me if I know from experience...

Me too.

https://stocks.apple.com/A0pibbIODTTSUgMVu2iqYbQ

Some good news, bad news there.  The other good news is that refinance applications are up.  This is good in that it cascades to appraisers, Title companies and insurance in som cases, and often improves the consumer’s ( family’s) cash flow.  

Rents pretty much must drop as home prices do, otherwise landlords start losing their tenants as they become homebuyers.

So it's still a risk to the corporate investor, if the bubble bursts and rents drop below their costs, they're losing money.

Ask me if I know from experience...

I do get that... And homes IMHO are massively overvalued right now. 

I think the fear is that as more and more inventory is gobbled up by corporate investors, and they don't want to sell it, that keeps the housing shortage going and supply down--potentially staving off a correction. I don't entirely believe that; I think corporate investors can be just as subject to groupthink that "it'll never go down" and they can get destroyed by a bursting bubble too. 

But I think it's pretty obvious that there is a housing shortage--there simply aren't enough SFHs where people want to live, and (like it or not) Americans tend to prefer SFHs. We're not building fast enough to meet that demand. 

This reminds me so much of how some of my "boomer" elders are so out of touch.  They still think of the world like it was in the '60's, where you could buy a house for $5,000, a car for $2K, work part time and pay for college, get a job, get a pension, get health care.  They simply don't understand what kind of world younger people are living in. 

I'm a Boomer, I'd be surprised if any of "us" think that in literal terms.  "We" probably do underestimate how hard it is to "get ahead" for younger folks.

My kids fortunately are both doing well financially, not wealthy, just paying bills and putting some aside.  They are pretty sensible about money.  I don't send them any except for a birthday thing.  I know a lot of the younger 30 somethings around me have good incomes but a lot of debt and no down payment.

I do get that... And homes IMHO are massively overvalued right now.

I think the fear is that as more and more inventory is gobbled up by corporate investors, and they don't want to sell it, that keeps the housing shortage going and supply down--potentially staving off a correction. I don't entirely believe that; I think corporate investors can be just as subject to groupthink that "it'll never go down" and they can get destroyed by a bursting bubble too.

But I think it's pretty obvious that there is a housing shortage--there simply aren't enough SFHs where people want to live, and (like it or not) Americans tend to prefer SFHs. We're not building fast enough to meet that demand.

well the normal supply of homes (for sale)doesn't just come from building.  Life cycle is what typically provides homes for sale:
-first time home buyers
-followed by first move up home or time to add kids
-bigger house for the family
-now it is empty nester time
-retirement home
-not to mention the "we are moving up the income scale and can afford more" segment

Virtually all of those segments have stopped selling, which stops buying, in a big circle.  roughly 50-60% of the existing residential mortgages are under 4%, so people are just staying in place. It has a negative impact on all of the segments I listed, but especially first time home buyers.  It also causes more people to rent versus buy, which in turn drives up rents.

I think the most misleading thing I hear is that their is a "housing shortage" and we need to build more.   While there is a small degree of validity to that, it really has little to do with home affordability.  IN fact- it is the flea on the tail of the dog. Get inflation and interest rates under control, and yes, keep home building brisk, and the normal cycle and segments return.  People will sell because they want to buy the next, people will buy the next so will be wanting to sell.   

well the normal supply of homes (for sale)doesn't just come from building.  Life cycle is what typically provides homes for sale:
-first time home buyers
-followed by first move up home or time to add kids
-bigger house for the family
-now it is empty nester time
-retirement home
-not to mention the "we are moving up the income scale and can afford more" segment

Virtually all of those segments have stopped selling, which stops buying, in a big circle.  roughly 50-60% of the existing residential mortgages are under 4%, so people are just staying in place. It has a negative impact on all of the segments I listed, but especially first time home buyers.  It also causes more people to rent versus buy, which in turn drives up rents.

I think the most misleading thing I hear is that their is a "housing shortage" and we need to build more.  While there is a small degree of validity to that, it really has little to do with home affordability.  IN fact- it is the flea on the tail of the dog. Get inflation and interest rates under control, and yes, keep home building brisk, and the normal cycle and segments return.  People will sell because they want to buy the next, people will buy the next so will be wanting to sell. 

Exactly this.