Single-Family Rental Market Trying to Prove It’s Sustainable via Multifamily Executive Magazine

Last week’s initial public offering by the real estate investment trust American Homes 4 Rent, which captured $706 million, raises more questions than answers about the long-term viability of the single-family rental home market.

That IPO, whose haul was significantly under the $1.25 billion projection the Agoura Hills, Calif.-based company made in its original prospectus, came at a time when some investors have cooled on the other publicly traded companies in this sector, American Residential Properties and Silver Bay Realty Trust Co.

The Wall Street Journal reported late last month that two single-family rental home providers, Waypoint Homes and Colony American Homes, have put their plans to go public on hold. (A spokesperson for Waypoint declined to comment for MFE’s article, and Colony did not return calls from MFE requesting comment.)

Even the Federal Housing Finance Agency—whose Real Estate Owned Pilot Initiative, launched two years ago, has transferred 1,763 REO properties to new owners—seems ambivalent about future demand.

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