Pathway Homes Launches $750M Affordable Home-Buying Platform
The program is aimed at people who cannot afford to buy in today's market and is similar to one Blackstone launched last month.
New company Pathway Homes has introduced a $750 million program in which it purchases a home on a consumer’s behalf, and then provides them with options to purchase the home in the future. Aimed at people who are currently shut out of the housing market, it is the second such offering by a major player in the last month, following Blackstone’s Home Partners of America $1 billion program in which it will buy rental homes, rent them at a discount to people at a certain income level and then allow them to buy the homes at below market prices.
Likewise, Pathway Homes’ offerings are an appeal to potential homebuyers faced with rising home prices, constrained supply, and competitive local housing markets.
Home Partners of America’s program, called Choice Lease, is designed to prevent crowding out of potential home buyers during this competitive home buying market, the company says.
Pathway helps potential buyers identify their home, purchases it on their behalf, and then provides them with options to purchase the home in the future. At purchase, Pathway establishes rent and home purchase option prices with fixed, below market annual increases, typically over a five-year term.
It also works with customers to ensure they will have the financial capacity to buy, provides financial counseling and support and doesn’t impose financial penalties if the customer wants to leave the home.
Pathway was launched by Invitation Homes, Regis Group and Fifth Wall.