Investor home purchases raise rental concern
Investors are buying thousands of houses in the greater Indianapolis area to use as rental properties in a move that has boosted home prices but raised worries about resale values.
The mass purchases by big investors have led to a 19 percent increase in sales over the past 12 months. About half the increase is due to investor activity.
The more than $400 million the investors have spent in the past year has driven down the housing vacancy rate but has also made some neighborhoods more of a rental market.
Lance Rhoades of Re/Max Centerstone tells The Indianapolis Star that Indiana's low housing prices make it attractive to investors.
Mortgage brokers caution that the bottom could fall out of the market if the investors leave in the future.