DAILY REAL ESTATE NEWS | TUESDAY, MARCH 06, 2018
Landlords own thousands of single-family homes across the U.S. With housing shortages abounding, some are calling on landlords to start selling. A slowdown in rent growth may convince more to finally unload their inventories.
“As new multifamily supply catches up with demand and slows rents, some large investors may begin putting their holdings of affordable single-family homes up for sale, which would be great news, particularly for first-time buyers,” says Lawrence Yun, chief economist of the National Association of REALTORS®.
Last week, NAR reported that contracts to buy previously owned homes dropped to their lowest level in more than three years in January. They cited low inventories of homes for sale to blame.
A jump in apartment construction has slowed rent growth for many multifamily buildings across the country, but single-family landlords are still mostly reaping profits. Invitation Homes Inc., the nation’s largest single-family landlord, owns more than 80,000 properties. It is forecasting its revenue growth to be about 4 percent to 5 percent in 2018, which far outpaces rent-growth projections for apartments, according to Green Street Advisors LLC, a research firm.
“Single-family rental top-line growth should continue to fare much better than that of apartments due to steady demand and limited impact from competitive new supply,” Green Street Advisors note in a recent report.
Source: “In Supply-Starved Home Market, Can Wall Street Landlords Help?” Bloomberg (February 28, 2018)