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A Brief Summary of the Single-Family Home REIT Market


The first publicly traded single-family home REIT debuted in 2012.

“Launched after the collapse of the housing and mortgage markets, the business of single-family house rentals is now well off the ground and nearing cruising speed and altitude,” said Stephen Percoco of Lark Research, in Seeking Alpha. The handful of firms that have dominated the institutional market have purchased more than 400,000 homes in three years.

“The opportunity arose because banks and the housing market could not cope with the flood of foreclosures,” Percoco said. “Those investors who stepped up early were able to buy at bargain prices, making it profitable to rent out houses and perhaps sell at a profit later, after the rebound in house prices.”

Although the article was written in 2014, the article’s basic question remains valid: can large-scale REITs build scale to create operational efficiency?

Why is the growing impact of single-family home REITs a positive for investors in single-family homes?

One reason is increased rents. A July 2016 Morningstar report found that properties backing single-family rental securitizations saw rents rise 5.4% year-over-year.

A second reason is the recent decline in home ownership. “The trend of declining homeownership is an opportunity for institutional owners of single-family homes, said John Pawlowski, senior associate at Green Street Advisors, in National Real Estate Investor magazine. “The outlook for near-term rental household formation and subsequent demand for single-family rentals is favorable.”

For more information on why you should consider investing in a professionally managed portfolio of single-family homes, please contact Harold Willig at 917-209-4452 or harold.willig@springviewinvestments.com

Harold Willig is the Manager of SpringView Investment Management, LLC, which he founded in 2012. Mr. Willig also served as HFZ Capital Group’s Chief Financial Officer, and was responsible for the oversight of HFZ's Finance and Accounting team. He has over 17 years of finance and accounting experience. Mr. Willig also ran a consulting practice and provided valuation, analysis, and transactional support services to multi-billion dollar real estate companies. Previously, Mr. Willig served as the Senior Controller and Vice President of Financial Analysis and then the Chief Financial Officer of the Athena Group, a multifamily development company and fund manager.

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