While home prices aren’t rising by double-digits like they were following the financial crisis, real estate is still a “good investment,” the CEO of the largest single-family rental owner told CNBC this week.
“The market continues to go up for the values of houses,” says Schwarzman.
The median price of single-family homes sold in March surged 8.7 percent year-over-year, according to the National Association of REALTORS®.
Blackstone owns about 47,000 homes in the U.S., and has about $90 billion in real estate assets under management across the globe.
Schwarzman says Blackstone continues to invest money into the housing market. However, he does say they have curtailed their new investments compared to the buying spree they were on when the housing market had hit bottom following the financial crisis.
Blackstone Group recently told Bloomberg that it plans to raise rents on the properties it owns in some markets soon. Some of the largest single-family home landlords say they plan to raise their rents up to 5.7 percent this year, as they shift their focus from buying properties to boosting their revenue streams from the properties they already own.
Source: “Blackstone CEO: Housing Makes a ‘Good Investment,” CNBC (April 27, 2015) and “U.S. Single-Family Landlords Are Raising Rents, CEOs Say,” Bloomberg (April 21, 2015)