From Fortune:

1. The housing market isn’t looking good for 2023 with rising mortgage rates, home prices, and low inventory making it tough for people to buy homes. However, a significant multi-billion dollar acquisition might signal a change in the tide of the housing market for both consumers and institutional investors.

2. Major private equity firm Blackstone has announced a $3.5 billion acquisition of Tricon Residential, making it a top institutional homebuyer. Tricon owns 38,000 homes across the U.S., with the majority in Atlanta, as well as in Charlotte, Tampa, Dallas, Phoenix, and Houston.

3. Historically, Blackstone led the move in buying homes after the U.S. foreclosure crisis in 2008. The recent acquisition sent Tricon shares soaring by over 28%, providing an important bounce for Tricon’s financials.

4. The institutional homebuying market saw a surge during the pandemic, but mortgage rates hitting 8% in October 2023 dampened the market. This resulted in a pullback from institutional buying and more dispositions than acquisitions. Analysts predict more consolidations in institutional homebuying in 2024.



Read more: Blackstone’s $3.8 billion acquisition of Tricon rouses a slumbering institutional investing sector