The single-family rental (SFR) market has experienced dramatic growth over the last decade due to more consumers opting out of homeownership and higher rental costs due to an imbalance of supply and demand, but what does this mean for investors?
The single-family rental market has experienced dramatic changes over the last decade due to more consumers opting out of homeownership and higher rental costs due to an imbalance of supply and demand, but what does this mean for investors?
According to KBRA’s report, rent-to-own presents more risks for investors than the more common single-borrower, single-family rental securitizations that have grown in popularity over the last several years.
The single-family rental (SFR) market gained traction as a viable asset class with phenomenal growth in 2015. The homeownership rate fell to its lowest level in nearly five decades during the summer as more and more families and individuals chose to rent.
While existing home sales experienced a major month-over-month decline in November above what was expected due to seasonality, the single-family rental market was alive and well during the month with higher-trending retention rates and generally stable or lower delinquency and vacancy rates, according to data reported by Morningstar Credit Ratings in its December 2015 Single-Family […]
The current cycle has given rise to nationally oriented single-family rental businesses funded by institutional investors. This business is the creature of the huge amount of bank-foreclosed property that came on the market following the financial crisis, enabling the bulk buying of single-family homes. Single-family rentals have captured an unprecedented half of the total rental […]
“This reminds us of the large role housing plays in the overall economy,” Zillow Chief Economist Dr. Svenja Gudell said. “Total home value slowed this year, but there was still a significant increase in overall value, and many markets are more valuable than they’ve ever been.”
All of these factors have prompted the question as to whether or not housing policy should continue a focus on traditional homeownership or concentrate its efforts on a broader definition of what constitutes “shelter.”
Since Invitation Homes, a subsidiary of Blackstone Group, launched the first single-family rental securitization in November 2013, there have been 26 other deals with issuance totaling $13.81 billion, according to Morningstar’s Single-Family Rental Update for December 2015 issued this week.
