Cypress Bay rests at the very southern edge of Brevard County. But this rental housing development, thanks to a surging market in Central Florida fueled by scant available housing and a growing job market, caught the attention of the deep pockets of Wall Street.That’s a concern for a movement of Brevard faith-based organizations working for more affordable housing here.“Investors come in and of course invest. Property just goes off the roof,” said Bishop Merton L. Clark of Truth Revealed International Ministries. “Which marginalizes a whole lot of people who just can’t afford it. Especially those in Brevard County who make less than $46,000 a year.”Cypress Bay is a community in Palm Bay and all 87 homes were bought by two investment funds for $45 million. They were backed by the massive New York investment bank Goldman Sachs. It’s a relatively new move for Wall Street looking to capitalize on spiking rent prices according to the Chief Economist of the National Associate of Realtors Dr. Lawrence Yun. “The degree of large Wall Street money coming in fairly new. I think this is due to the unique circumstance of housing shortage,” Yun said. “Wall Street is able to generate money, private equity, hedge funds and others to say let’s go chase the rising rents and putting money into rental property development.” So what happened at Cypress Bay, with the steep rental market demand in Central Florida, will no doubt happen in other nearby neighborhoods.
Cypress Bay rests at the very southern edge of Brevard County.
But this rental housing development, thanks to a surging market in Central Florida fueled by scant available housing and a growing job market, caught the attention of the deep pockets of Wall Street.
That’s a concern for a movement of Brevard faith-based organizations working for more affordable housing here.
“Investors come in and of course invest. Property just goes off the roof,” said Bishop Merton L. Clark of Truth Revealed International Ministries. “Which marginalizes a whole lot of people who just can’t afford it. Especially those in Brevard County who make less than $46,000 a year.”
Cypress Bay is a community in Palm Bay and all 87 homes were bought by two investment funds for $45 million. They were backed by the massive New York investment bank Goldman Sachs.
It’s a relatively new move for Wall Street looking to capitalize on spiking rent prices according to the Chief Economist of the National Associate of Realtors Dr. Lawrence Yun.
“The degree of large Wall Street money coming in fairly new. I think this is due to the unique circumstance of housing shortage,” Yun said. “Wall Street is able to generate money, private equity, hedge funds and others to say let’s go chase the rising rents and putting money into rental property development.”
So what happened at Cypress Bay, with the steep rental market demand in Central Florida, will no doubt happen in other nearby neighborhoods.