THE WEATHER AUTHORITY FORECAST WITH CHIEF METEOROLOGISTS JOHN GAUGHN. CONTINUES.
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>> NOW ON NEWS, 4 JAX I TEAM
INVESTIGATION. THE INVESTOR
NEXT DOOR GIANT INVESTMENT
COMPANIES ARE BUYING UP
SINGLE-FAMILY HOMES IN LOCAL
NEIGHBORHOODS AND USING THEM
AS RENTAL PROPERTIES.
INSTITUTIONAL INVESTORS ARE
BEING BLAMED FOR CONTRIBUTING
TO RISING RENTS AND LEAVING
FIRST TIME HOMEBUYERS WITH FEW
OPTIONS.
>> THUS MAKING JACKSONVILLE’S
AFFORDABLE HOUSING ISSUE EVEN
WORSE. I TEAM INVESTIGATOR AND
MAXWELL BREAKS DOWN THE IMPACT
OF A TREND THAT’S HURTING MANY
JACKSONVILLE FAMILIES.
>> MORE AND MORE HOUSING IS
BECOMING AN INVESTMENT FOR
FIRMS LOOKING TO GROW CLIENTS
WEALTH RATHER THAN AN
INVESTMENT FOR FAMILIES. THE I
TEAM ANALYZED JACKSONVILLE’S
PROPERTY RECORDS AND FOUND
THAT AS OF THIS MONTH, MORE
THAN 9600 HOMES ACROSS THE
CITY ARE OWNED BY THESE LARGE
INSTITUTIONAL INVESTORS, WHICH
ARE COMPANIES THAT HAVE MORE
THAN 1000 HOMES NATIONWIDE IN
THEIR PORTFOLIO. RENTS AND
HOUSE PRICES IN JACKSONVILLE
HAVE GONE UP NEARLY 50% SINCE
2018.
>> DRIVEN BY PEOPLE MOVING TO
FLORIDA, A PERIOD OF LOW
INTEREST RATES AND
INSTITUTIONAL INVESTORS. HOW
BIG OF A PROBLEM IS IT’S HUGE.
SO HUGE. THE CITY OF
JACKSONVILLE SPENT MONTHS
EXPLORING THE ISSUE AND HOW TO
FIX IT AS PART OF A CRITICAL
QUALITY OF LIFE REPORT
PUBLISHED IN DECEMBER CITY
COUNCILWOMAN JU’COBY PITTMAN
SPEARHEADED THE WORKING GROUP
STUDYING AFFORDABLE HOUSING
AND ISN’T ACCEPTABLE ACCORDING
TO THE CITY’S REPORT,
INVESTORS BOTH BIG AND SMALL
BOUGHT 30% OF THE HOUSES THAT
SOLD IN JACKSONVILLE LAST
YEAR. A FIGURE THAT’S DOUBLED
SINCE 2015. REALLY EVENTS AND
EXPLAINS THE AGGRESSIVE BUYING
IN CASH OFFERS FROM
INSTITUTIONAL INVESTORS SET A
HOT PANDEMIC HOUSING MARKET ON
FIRE. SHE SAYS THE PROPERTY
SHE LISTED 2 YEARS AGO GOT 32
OFFERS IN THE FIRST 24 HOURS.
AND I HAD AGENTS COMING TO ME
SAYING WHAT ARE MY BY ARE
SUPPOSED TO DO?
>> MY BUYERS OF COULDN’T 10
OFFERS IN THE LAST WEEK AND
EVEN BEAT OUT EVERY SINGLE ONE
OF THEM BY CASH, INSTITUTIONAL
INVESTOR.
>> THEY NEED A HOME. THE NEWS
4 JAX. I TEAM ANALYZED DATA
FROM THE DUVAL COUNTY PROPERTY
APPRAISER’S OFFICE AND FOUND
NEARLY 9700 HOMES OWNED BY
INSTITUTIONAL INVESTORS SPREAD
ACROSS NEARLY EVERY ZIP CODE
IN DUVAL COUNTY. THE ZIP CODES
WITH THE LARGEST NUMBERS OF
THESE HOMES. 3, 2, 2, 1, 8, ON
THE NORTH SIDE AND 3 TO 2 FOR
4 ON THE WEST SIDE. EACH HAD
MORE THAN 1400 HOMES OWNED BY
ONE OF THE LARGE NATIONWIDE
COMPANIES. AND MORE THAN A
QUARTER OF THE RENTALS OWNED
BY INSTITUTIONAL INVESTORS IN
JACKSONVILLE ARE IN THE HANDS
OF ONE COMPANY PROGRESS
RESIDENTIAL, WHICH HAS MORE
THAN 2700 HOMES. NEXT MH
FORMALLY KNOWN AS AMERICAN
HOMES FOR RENT WITH MORE THAN
1400 HOMES. AMH IS ONE OF THE
COMPANY’S THAT’S BUILDING
ENTIRE RENTAL NEIGHBORHOODS AS
PART OF THEIR PORTFOLIO. LIKE
THIS STREET ON THE SOUTH SIDE,
THESE HOUSES WERE BUILT IN
2021. THEY’RE ALL RENTALS. 2
OF THE TENANTS TOLD THE I TEAM
THEY LIKE LIVING HERE, BUT
THEY WOULD RATHER OWN THEIR
OWN HOUSE AND THEY FEEL LIKE
INSTITUTIONAL INVESTORS LIKE
THEIR LANDLORD AND ARE HELPING
TO DRIVE UP COSTS. BUT SINCE
THE PANDEMIC BUYING FRENZY,
HOME PRICES IN JACKSONVILLE
HAVE LEVELED OFF AND INVESTORS
ARE BUYING LESS. HOUSES ARE
NOW SPENDING MORE THAN A MONTH
ON THE MARKET. BUT OWNERSHIP
STILL REMAINS UNATTAINABLE FOR
MANY FOR SOME RENTERS THE
INFLUX OF INSTITUTIONAL
INVESTORS HAS ACCELERATED IN
AFFORDABLE HOUSING CRISIS 2
DECADES IN THE MAKING FOR 161%
IN REQUESTS FOR HELP.
>> IN EVICTION CASES, FROM
2019 TO 2022. JIM CAL LOST KEY
IS THE PRESIDENT AND CEO OF
JACKSONVILLE AREA LEGAL AID
WHICH HELPS PEOPLE IN NEED WHO
ARE FACING EVICTIONS TO HIM.
THE INCREASE REPRESENTS A
FLAWED AND AND BALANCED
HOUSING MARKET. AND THE REASON
WHY INSTITUTIONAL LANDLORDS
WANT TO COME HERE
>> IS BECAUSE WE MAKE IT
ATTRACTIVE FOR THEM TO COME
HERE. A RECENT REPORT FROM THE
U.S. DEPARTMENT OF HOUSING AND
URBAN DEVELOPMENT HIGHLIGHTED
JACKSONVILLE IS ONE OF THE
CITIES WERE INSTITUTIONAL
INVESTORS OWN A SIGNIFICANT
PORTION OF SINGLE-FAMILY
RENTAL HOMES, PUTTING IT AT
16%. CAL LAWSKY SAYS FLORIDA’S
LANDLORD FRIENDLY LAWS IN
JACKSONVILLE. ZONING MORE THAN
90% OF ITS ZONED FOR
SINGLE-FAMILY HOMES HAVE MADE
IT A TARGET MARKET FOR
INVESTORS. YOU’RE OKAY WITH
SOMEBODY FLIPPING STOCK
QUICKLY, EVEN THOUGH IT MAY
AFFECT THAT COMPANY.
>> WHAT YOU MAY NOT BE OK
SOMEBODY FLIPPING HUMANS
QUICKLY, BUT THAT’S THE REASON
WHY THEY COME HERE. THE CEO OF
THE NATIONAL RENTAL HOME
COUNCIL, WHICH IS A TRADE
GROUP REPRESENTING THE
INDUSTRY, SAYS RENTAL HOMES
PROVIDE AN ATTRACTIVE
TRANSITION OPTION FOR PEOPLE
MOVING TO JACKSONVILLE. HE
ALSO SUGGESTS INSTITUTIONAL
INVESTORS AREN’T THE PRIMARY
CAUSE OF INCREASED HOUSING
COSTS GOING HERE IS THERE’S A
SUPPLY PROBLEM WHEN IT COMES
TO HOUSING IN JACKSONVILLE
DUVALL COUNTY.
>> THROUGHOUT THE STATE OF
FLORIDA REALLY ACROSS THE
UNITED STATES THAT THAT’S THE
POINT ISN’T ABOUT HOUSING. THE
DEMAND THAT’S OUT THERE.
>> A STUDY BY THE UNIVERSITY
OF NORTH FLORIDA FOUND RENTERS
IN JACKSONVILLE, ZIP CODES
WITH THE GREATER PERCENTAGE OF
INVESTOR OWNED HOMES. WE’RE
MORE LIKELY TO FACE AN
EVICTION FILING. MANY OF THOSE
SAME ZIP CODES WERE MORE
ECONOMICALLY DISTRESSED,
ACCORDING TO THE REPORT
INVESTORS COME IN AND THEY FIX
THE AREA OUT AND THEY’RE NOT
LOOKING FOR THE SAME TYPE
TENANTS WHO ARE IN THE AREAS
BEFORE THE CITY’S REPORT HAS A
LONG LIST OF RECOMMENDATIONS
FOR ADDRESSING THE ISSUE. THEY
INCLUDE COMMISSIONING A REPORT
ON THE SCOPE OF THE PROBLEM.
>> INCENTIVES FOR DEVELOPERS
TO PROVIDE MORE AFFORDABLE
HOUSING, INCREASING TENANTS
RIGHTS AND REGULATING
INSTITUTIONAL INVESTORS
THROUGH THINGS LIKE REAL
ESTATE TRANSFER TAXES AND
PLACING LIMITS ON OWNERSHIP
CONCENTRATION HOWARD WITH THE
RENTAL TRADE GROUP SAYS HE
DOESN’T THINK REGULATION IS
THE ANSWER. HE THINKS CITY
COUNCIL SHOULD BE
INCENTIVIZING MORE HOUSING
DEVELOPMENT FROM THE STUDIO.
I’M ANNE MAXWELL CHANNEL 4,
THE LOCAL STATION. A
SPOKESPERSON FOR AN EDGE
FORMERLY KNOWN AS AFFORDABLE
HOMES FOR RENT SAID AMH IS
PART OF THE SOLUTION TO THE
NATIONAL HOUSING SHORTAGE AND
AFFORDABILITY CRISIS BY
BUILDING NEW HOMES.
>> THE I TEAM HAS ALSO REACHED
OUT TO PROGRESS RESIDENTIAL