What the Single-Family Rental Boom Has Taught Multifamily Operators
Retail investors have taken the spotlight during the pandemic. Fueled by stimulus money, empowered by free trading apps like Robinhood, and organized in online communities like Reddit they have taken the stock market to new highs and have propped up some of even the most seemingly doomed companies (case in point, GameStop). But while retail investors do account for a large part of the investable capital in the world, it is still just a fraction of the size of what are called “institutional” investors such as a pension, endowment, insurance, and sovereign wealth funds. As retail investors rush into the equities market, many for the first time, institutions are looking to investments that have historically been the territory of the “main street” investment world: single-family home rentals.

Large financial institutions started taking single-family homes seriously as an asset class after the financial crisis in 2008. Big private equity firms got into the mix, the biggest of which, Blackstone, spent tens of billions as houses around the country were being sold from foreclosure. They went on to buy over 50,000 homes and rented them out under the brand Invitation Homes. They also acquired another 30,000 rentals when they merged with Colony American Homes and Starwood Waypoint Residential Trust. Eventually, these properties were spun off into a publicly traded REIT...
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- - Volume: 9 - WEEK: 21 Date: 5/18/2021 8:20:12 AM -