Magnetar Goes Long Ohio Town While Shorting Its Tax Base - Bloomberg

Magnetar Goes Long Ohio Town While Shorting Its Tax Base - Bloomberg: "Demand for rental accommodations in the U.S. has grown as almost 8 million homes were repossessed through foreclosure or sold for a loss since 2007, according to RealtyTrac. The homeownership rate dropped to 65 percent in the first half of this year, its lowest since 1998, Census data show, and may keep falling as more owners lose their homes and slow income growth and tight credit limit people’s ability to buy.
Last year, U.S. home prices dropped to a low of 35 percent below their 2006 peak, triggering a wave of acquisitions from investors trying to turn a business that’s been dominated by mom and pop landlords into an institutional asset class resembling the apartment industry.
Blackstone Group LP (BX) has led the stampede, spending more than $7.5 billion on almost 40,000 properties, followed by American Homes 4 Rent (AMH) with more than 20,000. Investors have largely targeted Phoenix; Atlanta; Dallas; Charlotte, North Carolina; and Tampa, Florida, where growth in jobs and population is expected to drive up rents and home values."

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