This is going to end badly. JP Morgan and Haven Realty Capital are planning to spend one billion dollars on rental properties across the U.S., starting with 250 homes in the Atlanta area. They are on their way to becoming a mega landlord.
The idea is that the partnership will buy entire communities from builders, presumably with a quantity discount. This concept emerged during the great recession as a way for builders to keep building in a period of low demand. The partnership would rent out the newly built homes.
This is at a time when demand for new housing continues to decline and cap rates are at a record low. The partnership may be disappointed at how low rents are versus construction costs, how long it takes to build, and what condition the homes are in after tenants rent them. But mostly, they will be disappointed with owning assets that lose value over the next few years.
https://www.businessinsider.com/jp-morgan-to-acquire-1-billion-of-single-family-rentals-2022-11