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Is Securitizing Single-Family Rentals the New Subprime Mortgage?

How did a shift in rental property ownership allow for the proliferation of the same tactics that caused the financial meltdown proceeding the Great Recession?

In her thesis, Maya Abood (MCP '17), documents how in the wake of the foreclosure crisis, financial institutions constructed oligopolies focused on maximizing returns on rent and home appreciation while passing risks to tenants and minimizing their own upkeep costs. Utilizing a case study of Los Angeles, Abood demonstrates uneven distribution of costs - in the form of disproportionate rent increases and responsibilities for maintenance - across race and socioeconomic status in the United States, identifying greater impacts in neighborhoods with higher percentages of lower assessed home values and high populations of African-American residents.

Read her full thesis, available via DSpaceĀ here.

The consequences of the emergence Abood observes in her thesis made salient in a new article from the Sacramento News and Review by Scott Thomas Anderson. To learn more, read the full article here.

Image credit: Maya Abood via Securitizing Suburbia: The Financialization of Single-Family Rental Housing and the Need to Redefine "Risk"