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Invitation Homes’ year-end results may signal what’s ahead for the rental home market
The residential real estate market’s post-pandemic glow is ebbing. Beyond last year’s tough interest rate environment, suppressed home sales and shrunken multifamily construction, the rapid-fire demand for build-to-rent and single-family rental homes, popular among consumers and investors in recent years, appears to be ticking down. John Olsen, chief financial officer of Dallas-based Invitation Homes, one of the nation’s largest rental home companies, sees it as a return to a more normal rent-growth environment. “We are looking at the pre-pandemic experience as sort of our model for how we think the curve is going to develop over time,” Olsen said during the company’s year-end results call this week with analysts and…
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Inflation Surprise Means More Pressure Ahead For Commercial Real Estate
U.S. inflation stubbornly rose again last month — even as energy costs dropped — all but ensuring that the Federal Reserve Board will raise its benchmark interest rate by 0.75% at its meeting later this month. The Fed has already raised rates by 2% this year, but inflation has yet to come down: The overall consumer price index rose by 8.1% year-over-year in August and by 0.1% over July, the U.S. Bureau of Labor Statistics reported Tuesday. The prospect of further monetary tightening could have more profound effects on the commercial real estate sector than the last round of hikes, experts told Bisnow Tuesday. The Eccles Building, which houses the U.S. Federal Reserve in Washington, D.C.…
