Dallas Tanner, the CEO of Invitation Homes, the largest single-family rental landlord in the U.S., expressed optimism about the long-term impact of a recently enacted housing bill that restricts institutional investors from buying existing homes.
He noted that while the bill aims to address housing supply issues through deregulation, immediate effects may be muted due to ongoing challenges such as mortgage rate volatility and high construction costs. The law, which took effect in July, prohibits investors owning over 350 homes from acquiring more existing properties, although they can still purchase newly built homes intended for rental.
Invitation Homes has adapted by focusing on creating new supply, having built or acquired over 6,000 new homes in the past five years. Tanner highlighted the company's strategy of acquiring homes from large builders and selling off older rental properties to align with market demands.
Despite a recent earnings report that exceeded expectations, Tanner acknowledged that the rental market is not as robust as during the pandemic's early years, but he sees signs of recovery in several markets.
The presence of large investors in the single-family rental market remains limited, representing less than 3% overall, but they have significant influence in specific metropolitan areas like Atlanta and Jacksonville