Invitation Homes’ monthly rent prices rise more than 9% – The Dallas Morning News

The nation’s largest owner of single-family rental homes continued to push rental prices in the second quarter as demand for housing continues to far outpace supply.

Dallas-based Invitation Homes reported Wednesday that the average monthly rent for its homes nationwide was $2,124 in the second quarter, up 9.4% from $1,942 in the same period of 2021.

In North Texas, Invitation’s second-quarter rents averaged $2,039 per month, up 7.9% from $1,889 the year prior. Its local homes were 97.3% occupied.

Invitation Homes president and CEO Dallas Tanner said rents have been on the rise because there is so much pressure on existing supply and because more people are turning away from homeownership in part due to mortgage affordability.

“It’s just incredible where the pricing has gone in some of these markets,” Tanner said. “Now trees don’t grow in the sky, and we would expect that [rent growth] will normalize over time, into the mid to high single digits.”

The company said it earned $111 million in the second quarter, up 83.9% from a year earlier. Its revenues increased 13.4% to $557 million.

So far this year, Invitation and its partners have bought 1,777 homes for $766 million and sold 330 homes for $128 million. Invitation is pushing to buy higher-priced homes through a joint venture with Rockpoint Group LLC that started buying its first homes in June for an average price of $588,985.

Invitation owned about 83,100 homes nationwide as of June 30. About 5,000 of those homes were in Texas, with 2,857 homes in the Dallas-Fort Worth area and the rest in Houston.

Tanner said he expects southern states like Texas to continue to outperform the rest of the country as the U.S. housing market slows and people continue to move south.

“We really love the Sun Belt high-growth markets; these are markets that we want to continue to buy and sell in,” Tanner said.

Bloomberg News reported this month that some single-family rental landlords are slowing acquisitions amid higher costs and prices. Tanner said rising debt costs are influencing how the company thinks about which homes it will buy.

“It wouldn’t surprise me to see some of our competitors, or even ourselves, take a step back and just reassess the marketplace to make sure that we’re buying at best pricing available to us,” Tanner said.

Dallas-Fort Worth single-family rentals rose 13.7% in price nationwide from May 2021 to May 2022, according to a recent CoreLogic report. May was the first time price growth did not accelerate from the previous month since January 2021.

“Increases in mortgage rates and high home prices can be headwinds to the for-sale housing market but may be continually pushing up single-family rents,” Molly Boesel, principal economist at CoreLogic, said in the report.

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