Categories: US Real Estate

Rental giants embrace iBuyers in order to grow inventories

Single-family rental giants, such as Invitation Homes and American Homes 4 Rent, are in search of more homes to buy, and they’re increasingly turning to iBuyers to find inventory. iBuyers, like Opendoor, Offerpad, and Knock, are tech companies that buy homes from sellers with instant cash offers and then put the homes back on the market.

Single-family rental companies purchasing homes from iBuyers increased from 3.9 percent of total iBuyer sales in 2016 to 9.6 percent so far in 2018, according to data from ATTOM Data Solutions, a real estate data firm.

Single-family rental companies purchased tens of thousands of homes during the housing crisis, mostly at bargain prices in foreclosure. Then, they rented out the homes to take advantage of a hot rental market. But as the housing market recovered, these companies are struggling to find more bargain-priced homes to add to their inventories.

“It’s not exactly a perfect marriage, but it may be becoming a better fit because [single-family rental] operators are more hungry for inventory, and demand may be weakening somewhat from owner-occupants as mortgage rates rise,” said Daren Blomquist, ATTOM’s senior vice president.

“For iBuyers, SFR companies could be a security blanket as the housing shifts from a seller’s market to a neutral market,” reported. “iBuyers claim the vast majority of their revenue comes from a transaction fee, not from house prices that appreciate between the time they buy the house, renovate it, and sell it.” But notes that the iBuyer model, which debuted in 2014, has yet to be tested in a housing market where home prices are holding steady or falling.

Mike Wheatley

Mike Wheatley is the senior editor at Realty Biz News. Got a real estate related news article you wish to share, contact Mike at

Recent Posts

Google AdSense – How to Use It on Your Real Estate Blog

Your real estate blog is one of the greatest marketing tools you have at your…

11 hours ago

This Week: A Look at Top St. Louis Agents

With tougher times ahead in the industry, here's a candid look at a few St.…

12 hours ago

5 Tips for a Successful Home Renovation

If you’re in the process of planning a home renovation, you're likely feeling both excited…

24 hours ago

6 Different Types of Home Inspections to Consider When Buying a House

When you're buying a house, it's important to have it inspected to ensure that there…

24 hours ago

How Interest Rates are Impacting Buyers and Sellers

Home sales are a part of the economy that is affected fast and significantly when…

1 day ago

How to create a real estate ecosystem?

Are you wondering what a real estate ecosystem is and how to create one? In…

2 days ago