Thesis Driven

Thesis Driven

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Thesis Driven
Thesis Driven
Single-Family Rentals on Steroids
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Single-Family Rentals on Steroids

How investors are enhancing yields via new consumer financial products and operating models.

Paul Stanton's avatar
Sandor Valner's avatar
Paul Stanton
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Sandor Valner
Nov 16, 2023
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Single-Family Rentals on Steroids
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The single-family rental industry, once seen as a straightforward proposition, is undergoing a period of rapid innovation.

As the global economy shifts, and as Americans’ perspectives on home ownership, investment, and community change, niche business models—like rent-to-own, shared appreciation, and co-living—are growing in popularity. 

But these models are not only helping consumers.  

They are also helping institutional SFR investors struggling to find acceptable risk adjusted returns for single-family acquisitions or developments in the current interest rate environment. In the first quarter of 2023, Invitation Homes had a net absorption of -103 homes (i.e., they bought 194 and sold off 297) compared to +675 in the first quarter of 2022.

So to start buying again, institutional groups are turning to niche models to enhance their investments.

In this article we’ll highlight:

  • Why SFR investors are currently on the sidelines

  • Owner Incentive models, and how investors can leverage them to acquire homes

  • Investor-Renter Partnership models, and how investors can enhance and secure income

  • New Operating & Niche Market models, and how they generate premium returns

  • Current adoption of these models, and what’s next?

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A guest post by
Paul Stanton
Co-founder and partner at PTB. Connecting real estate, technology and capital.
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A guest post by
Sandor Valner
Partner, Proptech Bankers Principal, VALOR Formerly Walton Street Capital, Credit Suisse
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