Magazine article Mortgage Banking

CoreLogic and Urban Institute Host Capitol Hill Session on SF Rental Trend

Magazine article Mortgage Banking

CoreLogic and Urban Institute Host Capitol Hill Session on SF Rental Trend

Article excerpt

On July 9, Washington, D.C.-based Urban Institute and Irvine, California-based CoreLogic hosted a panel discussion for congressional staff, agency policymakers, think-tank and nonprofit housing experts about the market impacts of rising institutional investor ownership of single-family (SF) rental properties. The event was titled "Cash Sales, Institutional Investors & Single Family Rentals: Performance, Pricing & Policy."

The discussion focused on the latest trends in cash sales and investor behavior, challenges associated with scattered-site property management of investor-owned single-family rental properties, and the viability of the current institutional investment model. They also examined why the renting of single-family homes may be on the upswing for the near future, the potential size of that market and the role to be played by so-called mom-and-pop landlords versus large institutional investors.

Presenters included CoreLogic Chief Economist Mark Fleming, who noted that the share of cash sales remains high at 38.4 percent, but is down from its July 2011 peak of 42.8 percent. The average cash-purchase share from 2001 to 2007 was 25 percent.

Fleming noted that the institutional investor's share of the market is small. He said it peaked at 7.3 percent in December 2012 and is now sitting at 3.2 percent.

Fleming told the audience that single-family distressed assets have been a highly popular asset focus for institutional investors but the supply is shrinking as foreclosure rates decline nationwide. …

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