December 7, 2023

2 min read

5 Markets Account for 20% of all Housing Inventory Sold by SFR Operators in the Last 12 Months

In previous posts, we highlighted how Vinebrook is disposing a significant portion of their housing inventory. In some cases, this involves taking hits as they reduce their asking prices. This time, we delved into identifying the markets that have witnessed a substantial number of properties being offloaded by portfolios with 100 or more units on a national scale. Here's what we found:

  • Over the past 12 months, SFR portfolios offloaded 3.5k homes, marking a decline compared to the same period in 2021-2022 when more than 20k units were sold by SFR portfolios. This slowdown in activity is correlated with the increase in interest rates and reduced demand in critical markets, such as Atlanta.
  • Five markets account for one-fifth of all inventory sold by SFR operators in the last 12 months, with Sacramento leading at 5 percent of all observed sales in this period.
  • In Sacramento, CA, and Riverside, CA the last 12 months have seen on average a ratio of 3 units sold for every unit purchased by SFR portfolios.
  • The offloading activity in Dallas and Houston, TX is primarily driven by major operators such as American Homes 4 Rent and others, despite both metros having a ratio of 1.02 and 1.08 homes purchased per unit sold.

If you're interested in learning more, reach out to us to gain insights into where the next alpha will emerge.

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