Blackstone’s Baratta Sees Underinvestment in Single-Family Homes

Blackstone Group Inc.’s head of private equity, Joe Baratta, said the lack of investment in building single-family homes in the U.S. since the 2008 financial crisis is poised to reverse during the next 10 years.

“There’s been a structural underinvestment in the construction of single-family homes,” Baratta said Thursday in an interview on Bloomberg Television. “We are at the beginning of a potentially decade-long increase in construction activity in single-family homes.”

Blackstone’s Baratta Sees Underinvestment in Single-Family Homes

Blackstone, the world’s biggest private-equity firm, is looking to gain from that trend “through derivative plays,” such as providing services to single-family homebuilders and investing in utility services, Baratta said. Earlier this week, the firm agreed to buy Home Partners of America Inc., a rental company that owns more than 17,000 houses.

Baratta said Blackstone doesn’t have enough capital to address the opportunities in the market and could deploy as much as $5 billion per investment.

“I’m optimistic about our ability to continue to deploy capital at scale,” he said.

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