Kelly Intelligence believes that the residential and apartment (“multifamily”) industry, via the RESI Index, is undergoing a seismic change due to demand and demographics. RESI index constituents have unique competitive advantages of high-demand locations, industry-leading scale, and local management enhance ability to efficiently maximize the resident experience. The single family rental companies in the index are emblematic of those competitive advantages.
Barron’s highlights one in their article, This Home Rental Stock Is One Way to Play the Hot Housing Market, where they state:
Millennials need a place to live—and it’s not only home builders who stand to benefit. Shares of Invitation Homes, which rents houses in residential hotspots, look like a winner […]Factors like low mortgage rates, remote work, and an intensified focus on house hunting have contributed to the housing market’s pandemic-era boom in demand, while a limited supply of homes for sale created additional competition.
Founded in 2012, Invitation purchases houses and leases them to renters. As of the end of June, the company owned more than 80,000 homes, the greatest concentration of which were in the western U.S. and Florida. The average Invitation home was 1,870 square feet—smaller than the average new single-family home in 2020—and has three bedrooms and two bathrooms, according to the company’s most recent earnings report. In the second quarter, its average monthly rent was $1,943, higher than the national average of $1,704, according to Zillow.