Invitation Homes CEO Says Market is 'Extremely Healthy'

The supply and demand dynamics that brought the housing market to where it is today will likely remain stable, resulting in steadily increasing home prices, says Invitation Homes’ CEO Dallas Tanner. The home builder told CNBC that high price increases have not created a housing bubble because of supply and demand, and though the unprecedented demand seemed to worry some, it resulted from unprecedented factors such as the pandemic and mortgage rates. Tanner described the housing market as “extremely healthy” and recent cool downs make the market even better to buy, sell, and build in.

The housing market has been one of the strongest parts of the U.S. economy during the coronavirus pandemic, although there are some indications it has recently been cooling somewhat. 

“For the past couple of weeks, housing has been hot instead of blazing hot, and it’s actually probably good for the market,” Redfin CEO Glenn Kelman told CNBC last week. 

But looking further out, Tanner said the fundamental conditions are supportive. Demographic trends, in particular, are powerful right now, he said.

“You have this wave of millennials coming our way,” with tens of millions of people looking for housing, Tanner said. “So, as you start to think about, would we see a decrease in either home purchasing or home leasing? We just don’t see it.” 

In fact, Tanner said sees the need for more “quality, affordable housing” across all categories to be available in the U.S. He noted that the number of single-family homes being built each year — roughly 1.5 million units — is similar to levels from the late 1990s. 

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