Private Equity Real Estate’s New Favorite Asset Class // In June of last year, I put out a video that talked about what I thought was the most promising property type that no one was talking about at that time, single family rental homes.
With housing prices largely unaffordable for many buyers across the country, people looking for more space and in-home offices more than ever before, and the rise of remote work allowing people to move from densely-populated major metros to many smaller, more remote cities in the US, I was pretty convinced that single family rental homes were primed for growth heading into the second half of the year.
Well, fast forward about 8 months to today, and it turns out that I wasn’t the only one that thought this, and during the third and fourth quarters of last year, more private equity firms jumped into the space than ever before, and institutional investment in the acquisition and development of single family rental homes approached $5 billion, by the end of 2020.
So in this video, to pick up where we left off last summer, we’ll break down what is shaping up to be private equity real estate’s new favorite asset class, why institutional investors are so bullish on this property type, and what I see as the biggest opportunities in the single family home space right now.
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Research and articles referenced in this video: