The popularity and investment potential of single-family rentals continues to grow with the closing of New York City–based asset manager Pretium Partners' second fund in the sector. The Pretium Residential Real Estate Fund II's investors are based worldwide and include insurance companies, pension funds, and high-net worth individuals, reports Globe Street's Erika Morphy.
Pretium says it is the largest private owner of single-family rental homes in the US, with more than 26,000 homes owned and under management across 15 markets.
SFR Fund II’s strategy is to focus on single-family homes in major US markets that are experiencing above-average employment and population growth.
The move reflects the growing investment appeal of single-family homes as more and more renters and would-be buyers prefer them to purchasing a residence, Morphy notes.
Private-sector companies like Pretium, along with the public-sector REITs in this space … have identified an ongoing need, or at least desire, on the part of middle-income families to rent homes instead of apartments and instead of buying.
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