August 2, 2015
The rent-to-buy housing market is apparently back. Since most Americans can’t pass a lot of lending requirements to buy a home, more firms are renting to residents until they are able to afford to buy the property.
A former Goldman Sachs executive started the fastest-growing firm in this sector, called Home Partners of America, and had real estate mogul Sam Zell as an advisor. Additionally, private-equity group BlackRock gave the firm $500 million.
Rent-to-own housing was popular in the 1990s, and the sector was not as active right before the recession, when firms had less lending criteria for home buyers.