Monday, February 13, 2017

Lawler: Some Data on Institutional Holdings of Single-Family Properties

by Bill McBride on 2/13/2017 03:10:00 PM

From housing economist Tom Lawler: Some Data on Institutional Holdings of Single-Family Properties

Invitation Homes, Blackstone Group’s single-family rental operator, recently went public, and its prospectus included some information on its portfolio of single-family rental properties. Other publicly-traded entities in the single-family rental business also provide such information, and I figured I’d compile some data.

Here is a table showing the number of single-family homes owned by selected publicly-traded companies (or subsidiaries of such companies). These totals include homes held for sale.

Single-Family Homes Owned by Selected Institutions, 9/30/2016
  NumberAvg. Sq. Ft.
Invitation Homes48,4311,844
American Homes 4 Rent48,1581,959
Colony Starwood Homes31,5571,849
Silver Bay Realty Trust Corp.*8,9741,645
Tricon American Homes8,0061,521
Total145,1261,853
*Silver Bay reported 8,837 SF homes, but the total excluded homes for sale, which I have estimated

American Homes 4 Rent merged with American Residential Properties, Inc. in 2006, and that merger involved the “acquisition” of about 8,938 homes, bringing AH4R’s total property holdings to about the same as Invitation Homes.

Below is a table showing the geographic distribution of single-family homes held by these institutions. Note that reporting by “geographic market” in some cases varies by institution. E.g., one institution combines Charlotte and Raleigh, NC into one market, while another breaks those markets out separately. Also, two institutions have an “other” category – American Homes 4 Rent (a significant number of homes owned are in this category) and Colony Starwood Homes.

Single Family Property Holdings of Certain Institions by Market, 9/30/2016
Invitation
Homes
American
Homes
4 Rent
Colony
Starwood
Homes
Silver
Bay
Realty
Trust
Tricom
American
Homes
Total
West 
Southern CA4,6332,7942807,707
Northern CA2,8929723826314,877
Seattle WA3,1773,177
Phoenix AZ5,6362,7761,3751,42440911,620
Tucson AZ0209209
Las Vegas NV9401,0231,7132902954,261
Reno NV0251251
Salt Lake City UT01,0481,048
Denver CO01,9811,981
Midwest
Gr. Chicago ILIN2,9732,0475,020
Minneapolis MN1,1831,183
Indianapolis IN02,9013533,254
Cincinnati OH01,9521,952
Columbus OH01,5002841,784
South
Southeast FL5,5883,69330860410,193
Tampa FL4,9971,7293,7171,11150012,054
Orlando FL3,7341,5571,9414917,723
Jacksonville FL2,0181,6594514,128
Atlanta GA7,5373,9505,5572,6941,20720,945
Charlotte NC3,1232,8008926891,4128,916
Raleigh NC01,8281,828
Winston-Salem NC0761761
Charleston SC0725725
Columbia SC0426426
Dallas TX04,3402,0435046147,501
Houston TX03,1532,7268206,699
San Antonio TX01,0032041,207
Austin TX0695695
Nashville TN02,3812402,621
Not Specified 07,0879678,054
TOTAL48,43146,91530,6118,8378,006142,800
Note: AH4R, Colony, and Starwood totals exclude homes available for sale

There are a few striking things to note. First, none of the properties held by these companies are in either the Northeast of the Mid-Atlantic regions of the country. Second, the different entities have decidedly different geographic concentrations, though none would be classified as “geographically diverse” relative to the US as a whole. And finally, the entities’ single-family rental property holdings are especially large relative to the size of the overall housing market in Atlanta, Charlotte, Orlando, Tampa, and (to a lesser extent) Phoenix.