Recent articles and blogs have totally mischaracterized my investment in Colony American Homes (CAH) and the role the single-family rental industry has on housing today.
To be clear, I am a small limited partner in one CAH fund and, as such, I am a passive investor with no control over any of CAH’s business decisions.
That said, the comments made about Colony American Homes and other investors in single family homes for rent are totally false and inflammatory. The investments are removing distressed inventory from the market, which has been depressing home prices. Many of these homes being purchased were foreclosed years ago, and had become a blight on neighborhoods. Instead, the investors rebuild communities and provide jobs. And they allow families who cannot buy or prefer not to, to stay in the communities they want. The average renter stays for five years.
Finally, the homes being purchased by CAH and other investors are typically all-cash investments so they are not crowding-out other buyers; most homes purchased are not even on the open market.
Readers would be better served if the authors had bothered to check the facts about my investment and the positive role institutional investors are having on the housing market.
—Richard Blum[in response to ‘Homewrecker,’ July 8].
The Pacific Sun stands by the ‘Homewrecker’ story.