According to Yardi Matrix’s new bulletin, institutional investment in single-family rental (SFR) homes is on the rise and is expected to grow drastically over the next eight years. For 2021, Yardi Matrix shares that institutional acquisitions of SFRs in communities of 50 or more units skyrocketed to $2.5 billion. Yet, investors are now having to look at the most effective strategies for growing portfolios as interest rates increase.
“Rising home and mortgage costs in the second quarter of 2022 increased the cost of capital for institutional buyers, so the segment's growth is likely to slow and returns will moderate. Even so, the industry benefits from strong long-term demand drivers and the explosive growth in institutional capital," says Matrix analysts.
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