HOUSINGNEWS REPORT
FEEDING THE SINGLE FAMILY RENTAL BEAST
INSTITUTIONAL INVESTOR PURCHASES SHRINKING
INSTITUTIONAL INVESTOR (10+ PURCHASES)
SHARE OF SINGLE FAMILY & CONDO SALES
8.0%
300,000
7.0%
250,000
6.0%
200,000
5.0%
4.0%
150,000
3.0%
100,000
2.0%
50,000
1.0%
0.0%
0
Difficulty finding deals on single family rental (SFR) inventory isn’t just a newbie investor challenge, according to Kevin Ortner, CEO at Renters Warehouse, a third party residential property management firm that manages more than 22,000 SFR properties nationwide. “There are a lot of buyers, both big and small, looking to grow their SFR portfolios and inventory is very tight. This is leading to creative ways to find new product — from build-to- rent programs, off-market inventory programs and iBuyer initiatives,” said Ortner, whose company manages properties in 42 states. “There are several firms positioning themselves to be able to help bring supply to meet the demands of investors, and I expect that will continue to grow. I’m also seeing investment in technology and data across the space allowing greater scale, efficiencies and insights.” Institutional investors purchasing at least 10 homes accounted for 2.9 percent of all single family home and
“There are a lot of buyers, both big and small, looking to grow their SFR portfolios and inventory is very tight. This is leading to creative ways to find new product — from build-to-rent programs, off-market inventory programs and iBuyer initiatives.”
KEVIN ORTNER CEO, RENTERS WAREHOUSE
condo sales in 2017, down from 3.4 percent in 2016 and down from a peak of 7.4 percent in 2012, according to an analysis of public record sales deed data by ATTOM Data Analysis. Through the first three quarters of 2018, institutional investors had purchased 59,762 single family homes and condos, accounting for just 2.3 percent of all sales. Chronic Supply Problem SFR marketplaces Roofstock and OwnAmerica have both implemented, inventory-inducing initiatives over the past year.
going directly to owners of investment property and telling them about Roofstock,” said CEO Gary Beasley, explaining how his firm is addressing what he refers to as a “chronic supply problem. We’re trying to add new supply to the market in the form of folks who are sitting on the sidelines who don’t really know how to sell. “We know what sells on our marketplace, so we can go out and get those homes and present those to investors on our site,” Beasley continued, adding that Roofstock has employed both big data and old school marketing techniques to facilitate this direct-to-SFR-sellers approach.
“One of the remedies that we’re pursuing that’s bearing fruit is we’re
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NOV 2018 | ATTOM DATA SOLUTIONS
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