The hottest investment on Wall Street right now isn’t crypto it’s good old-fashioned real estate. Will Parker at The Wall Street Journal says that single-family homes built to rent are emerging as the hottest corner of the U.S. property market…(Wall Street Journal)
- New household formation is helping to increase demand for homes. However, this demand is increasing prices at a record clip which is “driving more people to keep renting, even as rents rise, said Green Street analyst John Pawlowski.”
- As home prices rise so do rents which means home investments are offer quite a nice return. “The expected risk-adjusted annual return for built-to-rent investments in the private market is now about 8% on average…”
- This ROI is creating quite the incentive for builders to build which they are in fact doing. “American Homes 4 Rent, which owns more than 55,000 houses, built 1,600 new ones last year and expects to deliver more than 2,000 in 2021. Tricon Residential, a Sunbelt-focused single-family rental owner, made its debut on the New York Stock Exchange last month and has plans to buy up to 5,000 new construction rental homes directly from home builders.“
