Housing-News-Report-November-2016

HOUSINGNEWS REPORT

FEATURED ARTICLE

MARKETS WITH MOST INSTITUTIONAL INVESTORS (Q3 2016)

12.3%

Memphis, TN-MS-AR Birmingham-Hoover, AL Lakeland-Winter Haven, FL York-Hanover, PA Tulsa, OK

9.0%

7.5%

5.9%

5.6% 5.5% 5.4%

Augusta-Richmond County, GA-SC Atlanta-Sandy Springs-Roswell, GA Ocala, FL Winston-Salem, NC New Haven-Milford, CT Charlotte-Concord-Gastonia, NC-SC Dayton, OH Columbia, SC Greensboro-High Point, NC Huntsville, AL

5.3% 5.3%

5.1%

5.0% 4.9% 4.9% 4.8%

* Institutional Investor is defined as any entity that purchases 10 or more properties in a calendar year.

4.7%

Buyers from Boston to Beijing “You can be sitting in Boston or Beijing looking at a home just like anyone else,” he said. “We’re finding there has been this big sort of shadow demand of people wanting to invest in the asset class but haven’t been able to do it until they came across our solution. … People have felt like they have to buy near where they live (and) do a lot of the work themselves.” Beasley said improved financing options such as those offered by Colony and others are helping those same buyers purchase more properties than they originally thought they could. “A surprising number of these people are not aware that they can finance these assets,” he said. “I can buy six or eight

Grass-Roots Growth in SFR The shifting focus of Roofstock and Colony American Finance toward smaller retail investors aligns with the shift in the marketplace evident in the ATTOM Data Solutions Q3 2016 Single Family Rental Market Report , which shows 2.7 percent of all single family homes purchased in the first seven months of 2016 went to institutional investors — entities purchasing 10 or more properties in a calendar year. While that was up from 2.1 percent in the first seven months of 2015, it was down from a peak of 8.4 percent in the first seven months of 2013. Meanwhile, the overall single family rental market is continuing to grow, with 31 percent of all single-family homes purchased in 2015 owned by non-owner

houses instead of two with this financing. It’s great for us because we can sell more houses to these clients.” Crowdfunding is an emerging innovation that allows smaller, passive investors to invest in real estate with limited exposure to risk, according to Whitmire, the Atlanta-based operator buying mostly in Alabama. “We just raised a couple million dollars last month with RealtyShares,” he said, explaining that an individual investor could put $1,000 into that crowdfunding initiative and spread their risk out over the hundreds or even thousands of properties that are part of the opportunity. “It allowed us to buy more properties and to buy them cheaper.”

ATTOM Data Solutions • P6

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