Investing Giant to Double Down on Suburban Home Purchases

August 5, 2020

Invitation Homes, the nation’s largest single-family landlord, is reportedly ready to increase its offerings in the suburbs.

With low mortgage rates and consumers’ increasing desire for more space, Invitation Homes says it is ready to add to the 80,000 single-family homes in its rental portfolio.

The company’s stock has risen 84% since the market’s low on March 23. The firm has raised $448 million through a June share sale and plans to use two-thirds of that amount to purchase homes to add to its portfolio, Bloomberg reports.

“We can certainly handle much more scale on our platform,” Dallas Tanner, CEO of Invitation Homes, told Bloomberg. “Is that two times our current footprint? Maybe.”

Invitation Homes was spawned following the foreclosure crisis, purchasing single-family homes in foreclosure and converting them into rentals.

The company resumed its purchases in June, reportedly focusing on properties in Phoenix, Seattle, and other metro areas that had been growing prior to the pandemic. It’s also targeting suburbs closer to the city center. Bloomberg also reports that Invitation Homes is buying homes directly from builders and iBuyers. The company says it is also working on a plan to purchase homes and rent them back to sellers.

“Investors of all sizes are really active, and everyone is after the same thing,” Greg Rand, chief strategy officer at Renters Warehouse, told Bloomberg. “The result is that the market for entry-level housing is super tight.”