P R E M I U M
Thursday, June 1

Invitation Homes: Structural Advantage


Mortgage rates keep rising with Fed policy and that's creating a unique structural advantage for landlords who own rental properties.  

In some areas, home prices aren't decreasing enough to keep up with interest rates, as potential sellers stay on the sidelines in hopes that rates will fall. This means that renting remains substantially cheaper than buying a home for folks in high-income, high-density areas like Southern California and metropolitan areas like Atlanta. 

So this week, let's take a look at the single-family home side of that business by updating our coverage in Invitation Homes ($INVH). Like our previous entries in real estate, INVH is poised to keep growing really well thanks to structural advantages built into their primary regions. 

Invitation has reportedly been the largest single owner of single-family homes since 2017 with over 80,000 properties across 16 markets. Through a $1 billion series of partnerships with third-party builders, INVH is looking to add thousands of more homes to its empire this year. 

Their model is simple enough and we see a lot of encouraging growth coming out of this space in the next 5 years, regardless of any potential reduction in homebuying costs that may materialize. 

INVH is a business model perfectly in tune with this economic moment. They won't achieve meteoric growth using this model, but they can achieve repeatable growth to stabilize our growth-heavy portfolio over the long term. 

Let's see how well-poised they are to win👇


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