flexiblefullpage
Currently Reading

Rental Home Investors Are Buying Fewer Homes

Advertisement
billboard
Market Data + Trends

Rental Home Investors Are Buying Fewer Homes

As financial returns shrink, major investors such as American Homes 4 Rent and Invitation Homes are pulling back from the rental market


May 16, 2023
Graphic of real estate investor carrying house
Image: Nastudio / stock.adobe.com

Recent analysis conducted by John Burns Research and Consulting reveals that institutional investors, or those who own more than 1,000 homes, bought 90% fewer single-family homes for rent in January and February 2023 than they did during the first two months of 2022 when the market was seeing a flood of institutional homebuying. Then, low interest rates, soaring rents, and historically high home values created prime purchasing conditions for mega investors, but as interest rates rise and rental prices begin to stabilize at the start of 2023, those big players are pulling back, according to Fortune.

In the first quarter of 2023, American Homes 4 Rent bought 312 single-family homes compared with 1,131 homes purchased just a year earlier, and that’s not the only institutional investor selling more homes than it’s buying in a 2023 housing correction. 

Earlier this month, we learned that Invitation Homes, the largest owner of U.S. single-family rental homes, is also now a net seller right. In the first quarter of 2023, Invitation Homes bought 194 homes while it sold off 297. That net decline saw the Dallas-based company's portfolio shrink from 83,113 single-family homes to 83,010 homes.

That's a sharp reversal from a year ago when in the first quarter of 2022, Invitation Homes—which Blackstone helped to grow before divesting in 2019—bought 822 single-family homes and sold off only 147 homes.

Read more

 

Advertisement
leaderboard2

Related Stories

Financing

Soaring Interest Rates Send Mortgage Demand to 27-Year Low

Two-decade high mortgage rates are causing buyers and prospective sellers to pull back from the housing market

Housing Markets

Florida Surpasses New York to Become Second Most Valuable US Market

These housing markets are seeing substantial growth driven by an uptick in new-construction

New-Home Sales

New-Home Sales Declined in August Due to High Mortgage Rates, Pricing Pressure

A housing affordability crisis is taking a toll on homebuyer demand and leading to a slowdown in new-home sales

Advertisement
boombox2

Top Articles

Advertisement
boombox1
Advertisement
native1
halfpage2

More in Category

COVID-19 may be easing its grip on the U.S. after a disastrous two years, but lingering supply chain disruptions have builders holding onto their pandemic business tactics

An archive of NHQA-winning companies that represent home building's best in Total Quality Management

Don’t let the current hype about single-family B2R communities obscure the need to create long-term sustainability and asset value

Advertisement
native2
Advertisement
halfpage1

Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.


Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Subscribe
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.