[quote=SD Realtor]I am not sure I see it either. One of the problems is the misconceptions of what sort of properties are held by industrial players. If you think that some entity holds 2000 sfr homes in San Diego county and they are generating income through property rentals you are about as wrong as can be. I do know that there are plenty of investment groups that purchase properties for flips but that is immune to long term interest rate issues. Now if you are talking larger commercial holdings that have 100’s or 1000s of doors per project then you are getting to be more accurate.
Steering the conversation back to what is most important for the generic engineer looking for a home on the I15 corridor, or Carlsbad, or Carmel Valley or Encinitas… very tough times and these homes will not be affected at all by any perceived commercial activity. The demand for these homes will be set strictly by the affordability for that same engineer and that is strictly determined by interest rates as well as the overall supply/demand curve.[/quote]
I think I mostly agree, though I’m confused about something you said here. I’m not aware of any big private equity RE activity in SD. Not saying it hasn’t happened, but it hasn’t been prominent in the news, nor have the numbers ever looked like they worked as well as they have in Phoenix, parts of FL, and some other small pockets across the country.
But this part…
Now if you are talking larger commercial holdings that have 100’s or 1000s of doors per project then you are getting to be more accurate.
seems to say just the opposite of what you said at the beginning of the paragraph. Are there a significant number of investors that have bought 1000 or more doors in SD, and are holding it? To add some context to what I’m talking about, I was told last week that there have been at least 100,000 SFRs acquired in the last 18 months in Phoenix by cash investors planning on renting and holding them. (I’m skeptical of the accuracy of that number, btw.)
