New Communities For Sale
Why just buy a single new home when you can buy an entire community? Investors are snapping up single-family homes at a record rate. To compete with those investors, investment funds are now buying entire new communities. Just north of Houston, DR Horton built a new community of 124 homes called Amber Pines at Fosters Ridge. DR Horton rented out all the homes and then put the entire community on the market. There was a slew of investment companies along with home-rental firms that bid on the project. The winner was Fundrise LLC which manages more than $1B on behalf of 150,000 wealthy individuals. Previously, investment funds have gobbled up foreclosed homes and some new communities. This is a new trend that portends higher home prices for all US homebuyers. With the potential of inflation on the horizon, it is a darn good bet to invest in real estate, commodities, and, of course, gold. The price of gold has stalled but the prices and sales of new homes has taken off like one of Elon Musk’s new rocket ships.
