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Institutional homebuying ban will lower prices long-term
CNBC • • business
Key Points:
- Invitation Homes CEO Dallas Tanner believes the new housing bill banning large investors from buying existing homes will lower home prices in the medium to long term, though not immediately.
- The bill, passed in July, prohibits investors owning over 350 homes from purchasing existing units but allows buying newly built single-family homes for rent, a market Invitation Homes is actively pursuing.
- Invitation Homes has shifted its strategy towards creating new housing supply by partnering with builders and acquiring homebuilders like ResiBuilt to focus on new rental homes.
- Large investors owning more than 1,000 homes make up less than 3% of the single-family rental market overall but have significant market shares in cities like Atlanta, Jacksonville, and Charlotte.
- Despite softer rents and demand compared to early pandemic years, Invitation Homes reported better-than-expected earnings and sees positive signs in several markets as it adapts to changing housing dynamics.
