Large‐Scale Buy‐To‐Rent Investors in the Single‐Family Housing Market: The Emergence of a New Asset Class

32 Pages Posted: 16 Apr 2019

See all articles by James Mills

James Mills

Amherst Holdings, LLC

Raven Molloy

Board of Governors of the Federal Reserve System

Rebecca Zarutskie

Federal Reserve Board

Date Written: Summer 2019

Abstract

In 2012, several large firms began purchasing single‐family homes, creating large portfolios of rental property, and securitizing these investments in capital markets. We present the first systematic evidence on this new investor activity in order to shed light on the factors that have supported its emergence. Three key factors were the ample supply of property for sale, tight mortgage financing and a decrease in acquisition and managerial costs brought about by technological advances. In addition, we show that buy‐to‐rent investors appear to have supported house prices in the neighborhoods where they concentrated.

Suggested Citation

Mills, James and Molloy, Raven and Zarutskie, Rebecca, Large‐Scale Buy‐To‐Rent Investors in the Single‐Family Housing Market: The Emergence of a New Asset Class (Summer 2019). Real Estate Economics, Vol. 47, Issue 2, pp. 399-430, 2019. Available at SSRN: https://ssrn.com/abstract=3372519 or http://dx.doi.org/10.1111/1540-6229.12189

James Mills (Contact Author)

Amherst Holdings, LLC ( email )

Raven Molloy

Board of Governors of the Federal Reserve System ( email )

20th Street and Constitution Avenue NW
Washington, DC 20551
United States

Rebecca Zarutskie

Federal Reserve Board ( email )

20th Street and C Streets NW
Mailstop 155-B
Washington, DC 20551
United States
202-452-5292 (Phone)

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