Tag

Rental Homes

All articles tagged with #rental homes

real-estate1 year ago

Wall Street Capitalizes on Rental Boom as Homeownership Declines

Institutional investors and private equity firms are increasingly investing in the build-to-rent market, where developers create neighborhoods of single-family homes for leasing rather than selling. This trend is driven by millennials, who are often priced out of buying homes in desirable areas and are opting to rent upscale homes instead. From 2021 to 2023, build-to-rent housing starts have doubled, reflecting a shift in housing preferences as renting becomes a more affordable long-term option for many.

real-estate2 years ago

Institutional Buyers: Temporary Sideline Stint in Housing Market

Institutional buyers in the housing market have temporarily paused their purchasing activity due to spiked interest rates and a lack of homes for sale. However, signs of another surge are emerging, with companies like MetLife Single Family Rental Fund and J.P. Morgan Asset Management securing significant capital for investment. The differences between the single-family rental space and the build-to-rent space include cheaper debt and the ability to create supply in the latter. Opportunities in the next five years include investing through local operators and the growth of the home equity investment space. Institutional buyers are often criticized for driving up home prices, but they fill a need by providing well-maintained rental homes and make up only a small portion of the rental housing stock. The housing finance system is broken, and private investors are crucial for providing housing in the country.

Institutional Buyers: Temporary Sideline Stint in Housing Market
real-estate2 years ago

Institutional Buyers: Temporary Sideline Stint in Housing Market

Institutional buyers in the housing market experienced a slowdown in Q1 2023, with a 90% decrease in home purchases compared to the previous year. However, recent developments suggest that this pause may be temporary. Companies like MetLife Single Family Rental Fund and J.P. Morgan Asset Management have secured significant capital for future investments, and Invitation Homes has made a large acquisition. The key factors that could spur another surge in institutional homebuying include stabilization in the debt markets and an increase in the supply of resale homes. The single-family rental space and the build-for-rent space have different dynamics, with the latter benefiting from cheaper debt and the ability to create their own supply. Despite concerns about institutional buyers driving up home prices, experts argue that they fill a need in the market and provide well-maintained homes to renters. The housing finance system is seen as broken, and private investors are crucial for building and renovating housing stock.