By Carol Ryan | Wall Street Journal
Investors with a stomach for political risk can get 30% off the price of U.S. homes right now.
That is the discount on the portfolios of Wall Street landlords who are being threatened with eviction from parts of the housing market. Shares in Invitation Homes INVH -2.44% decrease; red down pointing triangle and American Homes 4 Rent AMH -2.70% decrease; red down pointing triangle, who together own around 140,000 single-family homes, are trading well below the value of their assets, according to real-estate research firm Green Street.
Take Invitation Homes. Its current share price implies investors are valuing properties that could fetch $400,000 in today’s housing market at just $280,000, the company’s finance chief, Jonathan Olsen, said at a recent conference. The last time the median-priced home cost $280,000 was back in 2014.
