Although overall investor activity in the single-family rental sector is robust, large institutions have pulled back a bit, acquiring nearly 14,700 homes during the first quarter of this year.

According to RealtyTrac, this acquisitions total represents a 6.2 percent decrease in single-family purchases made by large investors like Starwood Waypoint Residential, Silver Bay Realty Trust, Colony American Homes and American Homes 4 Rent.

Because home prices have noticeably recovered in major metros and those markets hardest hit during the recession — Phoenix, Las Vegas and Southern California — these institutions are looking to a number of late recuperating secondary markets in the South and Midwest.

Markets where institutional investors accounted for the largest share of homebuyers during the first quarter included:

  • Memphis, Tennessee, where large buyers purchased 14.1 percent of all homes sold.
  • Charlotte, North Carolina, 12.1 percent.
  • Atlanta, 9.6 percent.
  • Jacksonville, Florida, 8.5 percent.
  • Oklahoma City, Oklahoma, 7.6 percent.

According to analysis from Morgan Stanley, single-family operators report spending more capital on rehabilitation costs for properties in the South and Midwest than they do on houses in the West. This could indicate that the two regions feature lower-quality homes or older properties than in the West. Older homes could equate to higher ongoing expenses.

During the first quarter, the following cities had the most homes sold while in the foreclosure process:

  • The Chicago metro area led the nation with 15.7 percent of its homes sold during the foreclosure process.
  • Las Vegas had 13.7 percent of its homes sold during the foreclosure process.
  • Jacksonville, Florida, had 12.4 percent of its homes sold during the foreclosure process.
  • Milwaukee, Wisconsin, had 12.3 percent of its homes sold during the foreclosure process.
  • Toledo, Ohio, had 12.3 percent of its homes sold during the foreclosure process.

Florida metros led the nation for REO sales, led by Palm Bay (15.3 percent), Orlando (15.3 percent), Jacksonville (14.1 percent) and Tampa (13.2 percent).

Email Erik Pisor.

Show Comments Hide Comments

Comments

Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
Success!
Thank you for subscribing to Morning Headlines.
Back to top
×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription