Tech

This company now owns enough single-family homes to house the entire country of Iceland

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Institutional ownership of single-family homes has been a controversial topic over the past year. Investors bought a record number of rental properties, while many potential homeowners were priced out of the market.

The largest owner of this asset class in the US is Invitation Houses Inc. (NYSE: INVH), a real estate investment trust (REIT) with a portfolio of approximately 83,000 single-family rental homes at the end of the first quarter of this year.

The company’s portfolio consists primarily of homes in the western US and Sunbelt states, where barriers to home ownership are greatest and demand for rent is strong. The median monthly rent for the entire portfolio in the second quarter was $2,124, with the highest median rent in Southern California at $2,779 per month.

Most of the houses have three or four bedrooms, some even have six bedrooms. Assuming a comfortable occupancy of an average of 4.5 people per house, Invitation Homes could easily provide housing for the entire country of Iceland, which is currently a population of 373,059.

Invitation Houses Growth

Invitation Homes announced its results for the second quarter of 2022 on July 27, 2022. The company’s portfolio grew 772 homes during the quarter and total sales increased 13.4% year over year to $557 million.

While the short-term outlook for the residential real estate market is dubious in the eyes of many people, the long-term outlook remains positive as the US still has a housing shortage that could potentially take decades to correct.

Latest insights into the private market:

  • Arrived houses expanded its offering to include short-term rental properties with a minimum investment of $100. The platform has already funded more than 150 single-family homes valued at more than $55 million.

  • The Flagship Real Estate Fund via Fundraising is up 7.3% so far and has just added a new rental housing community in Charleston, SC to its portfolio.

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