HOUSINGNEWS REPORT
THE RISING ‘BIG MIDDLE’ OF SINGLE FAMILY RENTALS
purchasing at least 10 properties a year in the third quarter of 2017.
HIGHEST SHARE OF PROPERTIES PER INVESTOR
2.27
traditionally been in,” said Pintar, noting that the company carefully studies demographics such as population growth, job growth and income growth to determine which markets to target. “We’re negotiating a couple different partnership agreements now. I think by the end of this year, we anticipate probably investing three to four million in a new market.” DETROIT-WARREN-LIVONIA, MI OKLAHOMA CITY, OK COLUMBUS, OH ATLANTA-SANDY SPRINGS-MARIETTA, GA LAS VEGAS-PARADISE, NV NASHVILLE-DAVIDSON-MURFREESBORO, TN BALTIMORE-TOWSON, MD DALLAS-FORT WORTH-ARLINGTON, TX KANSAS CITY, MO-KS ST. LOUIS, MO-IL CHARLOTTE-GASTONIA-CONCORD, NC-SC
Rise of the Repeat SFR Buyer That trend toward buying rentals in middle America is trickling down to smaller, retail investors as well, according to Gary Beasley, co-founder and CEO at Roofstock, an online marketplace for single family rentals. “We definitely see retail investors seem to be attracted to yield and as a consequence we’ve moved into some additional Midwest markets that seem to have a lot of interest for folks,” said Beasley, noting the company recently launched SFR listings in Cleveland and already has Memphis and some other low-cost markets with high rental yields. Meanwhile, some of the massive institutional investors that gobbled up thousands of single family rentals in the past five years are starting to cull their portfolios, providing more inventory for the mid-tier and smaller investors looking for yield.
2.15
2.08
2.00
1.93
1.89
1.87
1.86
1.83 1.83
1.81
into the middle of the country. Markets with the highest share of Q3 2017 single family home and condo sales to investors purchasing at least 10 properties per year were Memphis, Tennessee (9.3 percent); Birmingham, Alabama (8.3 percent); Clarksville, Tennessee (6.9 percent); Charlotte, North Carolina (6.6 percent); and Killeen, Texas (6.1 percent), according to the ATTOM Data Solutions Q3 2017 Home Sales Report. Nationwide, 2.7 percent of all home sales were to investors
Nahon and Pintar are not alone in migrating to smaller markets further
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NOVEMBER 2017 | ATTOM DATA SOLUTIONS
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