1 minute readBids came in* [see correction below] for a
With the onset of the Great Recession and declines in the homeownership rate, the share of built-for-rent homes increased in the years after the recession. While the market share of SFBFR homes is small, it has been trending higher. As more households seek lower density neighborhoods and single-family residences, but some may do so from the perspective of renting, the SFBFR market will likely expand in the quarters ahead as the economy recovers from the virus crisis.
The two questions are these:
- Can the public and large private homebuilding – and even some of the private equity land players like Golden Tree and Walton – get in the same game with land valuation rules that have changed so dramatically?
- Will the REIT gross and net yield assumptions prove out in the real world, especially as new challenges – such as those arising at the community level among voters and officials who oppose single-family-rental communities – emerge and the structural demand for these offerings settles into an enduring pattern?
** Correction: An earlier version of this story incorrectly reported that the Arizona land auction was a sealed-bid process. That misstates the actual facts, which are that July 21 event was a “live action,” in which public homebuilding company bidders hung in “until the end.” TBD regrets the error.
