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Institutional landlords’ single-family rental listings more than double

Listings of institutionally owned single-family rentals rose from 4,166 on Feb. 1 to 9,447 this month, but economists say most local markets have not seen a national inventory impact.

Reported · Written up by our desk · Residential

Economists and real estate professionals say the 21st Century ROAD to Housing Act is unlikely to dramatically change the national housing market, even as institutional investors have listed far more single-family rental homes for sale.

HousingWire cites Parcl Labs data showing listings of single-family rentals owned by institutional investors have more than doubled since February, climbing from 4,166 homes on Feb. 1 to 9,447 homes this month. The law defines institutional investors as owners of 350 or more single-family homes, and Parcl Labs estimates that covered firms own about 589,000 single-family rental homes, or 3.9% of roughly 14 million total in the US.

While the act restricts future purchases by large investors, it does not require them to sell existing properties, and it includes exceptions such as build-to-rent developments. Parcl Labs also estimates these investors account for about 40% of net selling by large institutional investors so far this year.

Compass chief economist Mike Simonsen told HousingWire that inventory has been flat across the country, so there has not been a nationwide flood of homes that would “move the needle.” Instead, he expects any meaningful changes to concentrate in markets where institutional landlords hold denser portfolios, such as parts of Tampa or suburban Atlanta.

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