This Company Now Owns Enough Single-Family Homes To House The Entire Country Of Iceland
Institutional ownership of single-family homes has been a controversial topic over the past year. Investors purchased a record-high number of rental properties while many would-be homeowners were priced out of the market.
The largest owner of this asset class in the U.S. is Invitation Homes Inc. (NYSE: INVH), a real estate investment trust (REIT) with a portfolio of about 83,000 single-family rental homes as of the end of the first quarter this year.
The company’s portfolio is mainly made up of homes in the Western U.S. and sunbelt states, where the barriers to homeownership are highest and rent demand is strong. The average monthly rent for the entire portfolio during the second quarter was $2,124, with the highest average rent being in Southern California at $2,779 per month.
The majority of the homes are three or four bedrooms, with some having as many as six bedrooms. Assuming comfortable occupancy at an average of 4.5 people per home, Invitation Homes could easily supply housing for the entire country of Iceland, which currently has a population of 373,059.
Invitation Homes Growth
Invitation Homes released its second quarter 2022 earnings on July 27, 2022. The company’s portfolio grew by 772 homes during the quarter and year over year total revenues increased 13.4% to $557 million.
While the short-term outlook on the residential real estate market is questionable in many peoples’ eyes, the long-term outlook remains positive since the U.S. still has a housing shortage that could potentially take decades to correct.
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