At the same time, the soaring cost of home ownership means that growing numbers of younger Americans and Brits renting rather than buying houses as they start families and gravitate toward the suburbs. Some of them may find their next landlord is based on Wall Street or in London’s financial district.
Analysts argue that this will improve standards in the rental sector and offer more choice in desirable neighborhoods. But some tenants who rent from corporate landlords dispute this, alleging substandard services and excessive rent increases.
The impact on house prices is less obvious. If institutions help build new homes, that should bring purchase prices and rents down. But if investors are hoovering up existing properties that would otherwise have been sold to individuals, that could squeeze out first-time buyers who were already struggling to afford their first homes.
Household incomes in the United States and United Kingdom have not…