Blackstone Group Inc. has agreed to buy a company that buys and rents single-family homes in a $6 billion deal, a sign Wall Street believes the U.S. housing market is going to stay hot.
The investment firm confirmed Tuesday that it has reached a deal to acquire Home Partners of America Inc., which owns more than 17,000 houses throughout the U.S. Home Partners buys homes, rents them out and offers its tenants the chance to eventually buy. The deal had been reported earlier by The Wall Street Journal.
U.S. home sales soared last year at their fastest pace in 14 years, when low mortgage rates and the rise of remote work during the pandemic sent buyers scrambling to find larger living spaces.
The lack of homes for sale relative to demand and record housing prices have slowed the pace of home sales in recent months. But on a historic basis, the market remains red hot, and analysts say demand from millennials entering their prime homebuying years is expected to fuel demand for years to come.
The median price for existing homes topped $350,000 for the first time in May, the National Association of Realtors said Tuesday. “That supply-demand imbalance will not be fixed overnight,” said Kathleen McCarthy, global co-head of Blackstone Real Estate.