FEEDING THE SINGLE FAMILY RENTAL BEAST
2018 NEW HOME SALES PRICES BY METRO MEDIAN NEW HOMES SALES PRICE
Indiana ($166,000); and Jacksonville, Florida ($170,000), according to an ATTOM Data Solutions analysis. One single family rental owner- operator with several hundred homes in three Midwest markets said build-to- rent doesn’t pencil well in his markets. “I think it makes sense in a lot of parts of the country, I’m not sure it makes sense in the Midwest. The supply problem is not as acute — large areas of land that are accessible to downtown,” said this owner-operator, who asked not to be quoted by name. He added, however, that the supply challenge is one that many in the industry are trying to tackle. “At a macro level you can’t build homes for much less than $300,000, population in the U.S. is growing and housing is massively undersupplied.” The median sales price of newly built single family homes and condos was $308,241 in 2017, a new all-time high, according to ATTOM Data Solutions.
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The median sales price so far in 2018 is down to $298,000, still the second highest median price of any year going back as far as data is available, 2000. The supply-challenged market will force most operators to shift acquisition strategies if they want to continue to scale, according to Rand with OwnAmerica.
“The big REITs that want to continue to scale are going to have to flex their buying criteria … either lower-priced properties in the markets they’re in or they are going to have to replicate their infrastructure in another market,” he said. “Everybody has the same box with some variations. So you have to either change your box or change your location.”
NOV 2018 | ATTOM DATA SOLUTIONS
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