American Homes 4 Rent Fills a Vital Market Segment in Affordable Single-Family Rentals
The National Association of Homebuilders recently released a study that concluded that 63 million households (or just over half) cannot afford a $250,000 home. According to the National Association of Realtors, the median home price in January was $266,300, while the median new home price was $348,200, according to the Census Bureau.
Since people still need a place to live, this statistical disparity is creating an opportunity for single-family rentals, especially for long-term renters. This is American Homes 4 Rent's (NYSE: AMH) niche.
Born out of the post-bubble real estate bust, American Homes 4 Rent is a real estate investment trust (REIT) that has managed to scale a business once thought to be unscalable: single-family rental homes. Historically, single-family rentals have been a highly fragmented market, dominated by local landlords and institutions. American Homes 4 Rent now has a portfolio of 52,552 properties in 22 states as of Dec. 31, 2019, and is one of the first movers in this space.
Source Fool.com
