GO
Loading...

Housing loses its 'big pop': Blackstone's Schwarzman

Blackstone Group has poured billions into real estate in the past few years, but the U.S. housing market has lost its "big pop" as an investment option, CEO Stephen Schwarzman told CNBC on Wednesday.

During an interview on "Squawk Box," Schwarzman said home prices price in some markets spiked as much as 20 percent in recent years but now investment returns on home prices have settled somewhere between 5 and 10 percent.

"That's just great, but it doesn't justify us buying at the same rate," said Schwarzman, whose firm has bought $7 billion to $9 billion worth of individual homes,

Schwarzman said he's content to limit his exposure at those levels.

"We think a lot of the big pop in housing has gone out," he said.

(Read more: Byron Wien: There's still time to buy stocks)

Asked whether Blackstone's big position in real estate helped drive up prices following the subprime mortgage crisis, Schwarzman said the investments have most likely affected only smaller markets where their home purchases have been focused.

"We're in effect a bit player in a very massive market, and the laws of supply and demand are really what drive housing," Schwarzman said.

(Read more: 'Beauty in eye of beholder': Blackstone on FB's WhatsApp buy)

—By CNBC's Jeff Morganteen. Follow him on Twitter at @jmorganteen.

Introducing Morning Squawk: CNBC's before the bell news roundup

Sign up to receive Morning Squawk in your inbox each weekday › Sample

Symbol
Price
 
Change
%Change
BX
---

Featured

Contact Real Estate

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    › Learn More
  • Diana Olick serves as CNBC's real estate correspondent as well as the editor of the Realty Check section on CNBC.com.