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As new and existing home sales fall across the U.S., investors are putting their homebuying plans on hold and waiting for an inevitable housing correction. On Thursday, Blackstone-owned Home Partners of America, one of the nation’s largest private landlords, announced that it will halt single-family home purchases in 38 U.S. regional housing markets by the end of September, and more investors are expected to follow.
In the event of a recession, overvalued markets like Boise, Reno, and Spokane could see home prices fall between 15% to 20%. An increase in affordability gives buyers an opportunity to make a comeback to a more affordable market and creates more incentives for investors and private landlords like Blackstone.
The announcement by Blackstone-owned Home Partners of America also comes just as more Wall Street firms are realizing that the intensifying housing correction could translate into falling home prices. Last week, Fitch Ratings released a report finding that U.S. house prices are at-risk of falling up to 15%. This week, Moody’s Analytics downgraded its outlook for U.S. house prices—projecting that a 5% to 10% price cut could manifest.
