Is housing now one of the greatest investments of the past 20 years?

by Rob Regan on February 11, 2013

Founder of Colony Capital private equity real estate investment firm Tom Barrack says on CNBC today that housing may be one of the greatest trades he’s seen in the past 20 years.  According to Barrack his and other similar firms like Blackstone have combined to purchase as many as 50,000 single family homes recently, but points to the total distressed inventory of 6 million homes as opportunity for a lot more.  The main reasons why he likes this “trade” is record low interest rates making homes the most affordable they’ve been since the 1980’s, the drop in price since the peak, under supply in new home building for the past 5 years, and finally low household formation – pointing to the fact that he has a 30 year old living at home who is now moving out.

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