Small Investors = Big Impact

“The narrative that corporations are buying up all the homes is politically convenient but factually wrong. For the market to be healthy, well-managed, and responsive to the needs of the families living in these homes, you actually need more institutional participation, not less,” quoted GlobeSt.

In last week’s newsletter, I also discussed the issues with provisions in the pending legislation of the 21st Century ROAD to Housing act. The legislation which definitely has some objectively beneficial items has been in the forefront of the dialogue with all residential rental investors for several months as its iterations have altered its scope. Most specifically, focus has been on a forced 7-year sale that almost certainly would limit supply nationwide by some estimates of up to a 40,000 home reduction. 

And as Auben strategic partner Ryan Smidt said to the NYT, deny renters single family experiences who are priced out (or electing out) of home-buying markets. 

Institutions hate uncertainty and volatility and there are boatloads of both currently. But this temporary sidelining of institutional capital could be a tremendous opportunity for small to medium-sized investors to more actively move in markets that are already undersupplied or moving to undersupplied status. 

In all Auben markets, affordability continues to be a problem and is being met by an aging populace wanting less space and less responsibility in their living. Even with normalizing rental rates and higher operating expenses, increases in demand are creating attractive opportunities for investors to achieve results similar to what Auben has experienced in its nearly fully-leased rental community Cedar Creek Estates in Jacksonville, FL. 

If you are an investor wondering how you can take advantage of this market dynamic please reach out to Chris Detreville to learn more about exclusive Auben opportunities including homes we have for sale in Houston. And next week look for our first episode of Real Estate Rewind where we discuss how individual investor owners always have and can always be part of the housing supply solution.