Even Without Meeting Tenants, Rental Income Comes 'Steady'... The Rising Trend of 'Laptop Landlords' in the US

Purchasing Homes in Unvisited Areas for Investment Purposes... Thanks to IT Development
Criticism That It Makes Homeownership Difficult for Low-Income Groups

With the advancement of IT, the number of 'laptop landlords' who buy houses online in the U.S. and rent them out is increasing. The photo is not directly related to specific expressions in the article. [Image source=EPA Yonhap News]

[Asia Economy Reporter Yoon Seul-gi] In the United States, the number of 'laptop landlords'?people who buy houses online in areas they have never visited and rent them out?is increasing. This is thanks to advancements in information technology (IT), which make it easy to obtain detailed housing information and connect with financial institutions and local property managers.

According to the Wall Street Journal (WSJ) on the 28th (local time), Jack Cronin (28), who lives in New York City, purchased a three-bedroom house in Jackson, Mississippi, which he had never visited, for $265,000 (about 356 million KRW). He currently rents it out for $2,300 per month (about 3.09 million KRW). The tenant has also never met him in person.

Such laptop landlords are becoming a growing trend in the U.S. They view rental income as their goal and consider owning rental properties as a core investment method alongside stocks and bonds.

The increase in laptop landlords has been made possible by technological advancements. WSJ explained that data service companies provide local information related to home purchases, such as sale prices, local crime rates, and school conditions. Online real estate companies like 'Roofstock' and 'Appreciate' connect prospective homebuyers with financial institutions and local property managers. Additionally, content publishers and online forums, such as the real estate advisory firm BiggerPockets, offer investment strategy advice.

Real estate consultant John Burns said, "Everything is possible online," calling it a "game changer" in the market. According to real estate information company CoreLogic, the proportion of home purchases for investment purposes among all single-family home sales reached a record high of 28% in February this year, up from 17% in February last year. Individuals or small businesses owning fewer than 10 homes accounted for about half of all investment-purpose home purchases.

According to the media, laptop landlords are mostly high-income IT professionals in metropolitan areas, and the regions they primarily invest in are southern metropolitan areas with many low- to middle-income tenants. According to real estate information company Attom Data Solutions, the proportion of out-of-state investors in total home sales in the first half of this year was 4.24% in Raleigh, North Carolina; 5.26% in Atlanta, Georgia; and 8.61% in Memphis, Tennessee?southern metropolitan areas significantly higher than the average.

Meanwhile, as the number of laptop landlords increases, rents have also risen, making it difficult for low-income residents in these areas to own homes. Aaron Banks, a city council member in the southern part of Jackson, pointed out, "People get trapped in a vicious cycle of being lifelong tenants."

This content was produced with the assistance of AI translation services.