The location of most SFRs is another reason why policymakers should consider SFR as a viable affordable housing strategy, according to the report. Many SFR units are close to downtown, on bus lines or other transit routes, established suburbs, or overall more apt to be located in central cities than single-family owner-occupied homes (34 percent … Continued
Traditionally, single-family rentals were owned by small mom-and-pop investors. But in the last four years, institutional investors have entered the space. Once upon a time, multifamily developers would look at anyone proposing to manage a portfolio of scattered single-family rentals as if they had two heads. But new investors have shown that by using proper … Continued
No matter how you crunch the numbers, the outlook for rentals looks strong for the foreseeable future.
Perhaps most surprising, single-family renting—initially perceived by many as a temporary solution for families who lost their homes due to foreclosure—continued to rise in popularity. The number of single-family rental households grew by 2.1% from 2013 to 2014, compared with 1.8% growth for households occupying multifamily rentals and virtually no growth in single-family ownership households.
It was widely deemed a temporary play: Large-scale investors buying thousands of discounted foreclosed properties during the worst of the housing crash and turning them into single-family rentals. When home prices recovered, they would surely sell them for a hefty profit. The housing market is recovering, albeit more slowly than expected. Foreclosure volume is way … Continued
It may be a relatively new market, but it’s doing pretty well despite its infancy. The delinquency rate across nearly every single single-family rental securitization is below 1%, according to a Morningstar Credit Ratings report on performance in the sector. Only American Rental Properties 2014 deal is above that 1% threshold with delinquent payments at … Continued
Since the housing crisis, large institutional investment companies have decided to enter the rental business, lured by a supply of low-cost and foreclosed houses. “Institutional investors own an operate an estimated 200,000 single-family homes,” says Matthew Beck, spokesman for the National Rental Home Council, a recently formed trade group that advocates for the single-family home … Continued
Investors that buy single-family homes are much less interested in sudden changes in home values as the recovery in the housing market continues. Homes are no longer steeply undervalued. Instead, investors are looking for good long-term returns based on rental income from their properties as well as appreciation in home prices that is based on … Continued
Advances in how companies use technology to evaluate mountains of data has quickened everything from stock trading to student test-performance evaluations to patient care. Behind the new speed in real estate is a change in how big buyers find most of their properties.