- This chart shows which rental markets have the most institutional landlords
This chart shows which rental markets have the most institutional landlords
To better understand which single-family rental markets had the most institutional rental activity over the past year, ResiClub reached out to Parcl Labs
On a nationally aggregated level, institutional homebuyers aren’t massive players. At least not yet. In total, they own around 1% of the U.S. single-family stock, according to Parcl Labs.
However, in some pockets of the country, institutional operators—those owning at least 1,000 homes—have become significant players in the single-family rental market.
To better understand which single-family rental markets had the most institutional rental activity over the past year, ResiClub reached out to Parcl Labs, a fast-growing real-time source for real estate data analytics.
The Parcl Labs data 👇
The chart above illustrates housing markets where institutional landlords made up the highest share of single-family rental listings in the past year. Please note that this is NOT data on the total institutional ownership of single-family homes by market; that figure is significantly smaller. We will present those figures in a future article.
According to Parcl Labs, institutional landlords have the biggest presence in the single-family rental markets in Atlanta (36%); Winston-Salem, N.C. (33%); Charlotte (32%); Indianapolis (31%); and Jacksonville (31%).
Those are all markets where institutional operators invested heavily during the Pandemic Housing Boom—a period characterized by ultra-low interest rates, easy access to capital, and surging home prices/rents. However, this trend has shifted with the onset of the rate shock, leading to a significant slowdown in institutional homebuying.
During a Twitter Spaces session with Parcl Labs co-founder Jason Lewris on Friday, I asked him if this regional concentration is “as simple as they [institutional landlords] have their internal analysts crunching the numbers and when they look everything from demographics, potential rent growth, and all these different numbers [including commuting patterns], that markets like Atlanta kept coming up No. 1, and so they all piled in?”
Lewris responded saying “I do think it’s that simple”
ResiCub PRO members will be getting a series of deep dives on ZIP code level housing data over the next month.
Below is a sampling, showing how inventory right now in Ohio compares to pre-pandemic levels.
Click here to view an interactive/zoomable version of the map below
Generally speaking, housing markets where inventory (i.e. active listings) has returned to pre-pandemic levels have experienced weaker home price growth over the past year. Conversely, housing markets where inventory remains far below pre-pandemic levels have, generally speaking, experienced stronger home price growth over the past year.
The map above suggests that home prices are likely to continue rising in 2024 across much of Ohio.