According to ATTOM Data Solutions, the country’s leading iBuyers – Opendoor and Offerpad – were purchased by institutional investors who bought at least 10 houses in 2018, about one in 10 US homes sold so far.

According to the analysis, a total of 743 houses sold by two iBuyers have been acquired by institutional investors so far in 2018 and represented 9.6 percent of total sales by these two iBuyers. This stems from the purchase of 293 corporate investors, which represents 6.6 percent of iBuyer sales in 2017, and the purchase of 65 corporate investors representing 3.9 percent of iBuyer sales in 2016.

“Tight inventory is a common challenge facing both individual and institutional single family rental investors across the country,” said Daren Blomquist, senior vice president with ATTOM Data Solutions. “Meanwhile the appetite for more SFR inventory continues to grow as a new wave of institutional capital builds. Industry innovators are rising to meet this challenge through a variety of inventory-inducing channels, including off-market, build-to-rent, and iBuyer initiatives.”

Top Three Buying Assets

The first three corporate procurement companies – Cerberus SFR Holdings LP, CSH Propety One LLC and TAH Holding LP – all appear to be associated with companies that purchase single family residences as leases.

These institutional investors may return to iBuyer as a source of inventory, and other inventory resources, such as foreclosures, have largely dried up in recent years. According to ATTOM analysis, institutional investor purchases represent only 2.3 percent of all home sales in the United States, down from 2018, from 2.9 percent in 2017 and 7.4 percent in 2012 .

Source: World Property Journal

Melike Vodina /