Beazer Homes USA Inc. (BZH) is getting into the rental business,
as the home builder started a new division to acquire and rent
recently built, previously owned homes.
Beazer, one of the largest U.S. home builders, said it will
include pre-owned homes built since 2004, including homes built by
Beazer. Distressed sales -- typically foreclosures or short-sales
-- are expected to be the primary source of its inventory. The
company plans to sell the homes when the housing market
recovers.
A bright spot for rival Lennar Corp. (LEN) during the downturn
has been its Rialto Capital business, which invests in distressed
real estate.
The housing market has continued to sputter even as other parts
of the economy have shown improvement thanks to higher consumer
spending and exports. However, U.S. unemployment remains high and a
steady supply of foreclosures is expected to weigh on home sales
and prices.
Beazer is starting in Phoenix, one of the hardest hit areas
during the housing crisis.
Beazer completed its first home purchases last month and expects
to have a portfolio of more than 100 homes by the end of its fiscal
year. The company said may expand the program to California or
Nevada, two other hard-hit states.
The company in February swung to a fiscal first-quarter loss as
closings and revenue slumped in the absence of a federal tax-credit
for buyers.
Shares closed Friday at $4.62 and were inactive premarket. The
stock is down 14% this year.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481;
Tess.Stynes@dowjones.com