Institutional investors coming for real estate

Invesco Real Estate has committed to investing up to $5 billion in single-family rental homes over the next three years, and represents an increased focus by institutional investors on residential real estate. Currently, 2 to 3 percent of the nation’s single-family rentals are owned by institutional investors versus half of the nation’s multifamily units. That gap could narrow, however. If institutional investors appreciably increase their single-family home market share, as all indicators show they might, the brokerage industry will have to adapt to accommodate the new sector. Their increasing presence also influences macro housing trends, which will affect homeownership, home demand and affordability – all key housing issues now.