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follow Patrick 2018 May 20, 5:38pm
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How the foreclosure crisis created the single-family rental industryThe industry is composed of a small number of key players. Invitation Homes and American Homes 4 Rent, the second-biggest single-family rental company, got their start in the early 2010s by taking advantage of bargain prices on foreclosed homes by buying huge numbers of properties in bulk. Since then, other companies, like Progress Residential, Main Street Renewal, and Tricon American Homes, have formed, and the industry as a whole has amassed a cache of about 200,000 single-family homes and turned them into rental properties.Granted, 200,000 represents a rather small slice of the 14 million units that make up the single-family rentals market in the U.S. And the bulk of landlords for these single-family homes are still small “mom-and-pop” operations, each of which owns only a few properties.Because single-family rental companies own such a small portion of the single-family rental market, it’s unlikely anything they do could have a significant effect on the housing market as a whole. But because the homes they bought are highly concentrated in areas affected by the foreclosure crisis, these companies could have an outsize impact on individual cities and specific neighborhoods.