SFR Remains a Hot Sector, But Some Renters Continue to Struggle Investors with small portfolios are more likely to feel the pain from tenants that have been unable to stay current on rents than REITs or private equity funds.
Millions of families who live in single-family rentals missed rental payments during the pandemic. Many might not be eligible for the billions of dollars in coronavirus relief passed by Congress in March 2021 or they may need help in applying for assistance.
But it’s likely the impacts will be different for larger investors, such as private equity funds and REITs, where a small number of delinquent tenants is offset by many others staying current, than for the “mom & pop” investors, who might only have one or a handful of properties and even one struggling renter can hurt the bottom line.
When Wall Street Controls the Housing Market planetizen.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from planetizen.com Daily Mail and Mail on Sunday newspapers.
(iStock/Illustration by Kevin Rebong for The Real Deal)
Another housing bubble is inflating but unlike the one that burst in 2008, buyers contributing to this bubble are less likely to live in those properties. This time, investors are pouring money into the growing single-family home rental market.
Investors have been gobbling up distressed single-family homes in the wake of the Great Recession, which led to foreclosures on hundreds of thousands of homes. But as the supply of those distressed properties dried up, investors including private equity firms and pension funds are competing with first-time homebuyers in the resale market, the Wall Street Journal reported.
Where to Find the Best Build-To-Rent Opportunities? wealthmanagement.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from wealthmanagement.com Daily Mail and Mail on Sunday newspapers.