Invest in Single Family Home REITs: 10,234 Reasons to Get Excited

What Are Single Family Home REITs?

Single Family Home Real Estate Investment Trusts (REITs) are companies that own and operate a portfolio of single family rental homes. They offer investors a way to invest in the residential real estate market without the hassle and expense of owning and managing individual properties.

Why Invest in Single Family Home REITs?

There are many reasons to consider investing in single family home REITs, including:

• Strong demand for rental housing: The demand for rental housing is expected to continue to grow in the coming years, driven by factors such as the rising cost of homeownership, urbanization, and the aging population.
• Diversification: Investing in single family home REITs can help you diversify your portfolio and reduce your overall risk.
• Passive income: REITs typically pay dividends, which can provide you with a steady stream of passive income.
• Long-term growth potential: Single family home REITs have the potential to generate long-term capital appreciation, as the value of rental properties tends to appreciate over time.

10,234 Properties and Counting: The Growth of Single Family Home REITs

The single family home REIT market is still relatively young, but it has grown rapidly in recent years. In 2021, the total number of properties owned by single family home REITs reached 10,234, up from just 2,873 in 2015.

How to Invest in Single Family Home REITs

There are two main ways to invest in single family home REITs:

• Publicly traded REITs: These REITs are listed on stock exchanges and can be bought and sold like stocks.
• Non-traded REITs: These REITs are not listed on stock exchanges and are typically offered through private placements.

Publicly Traded Single Family Home REITs

There are a number of publicly traded single family home REITs available, including:

• Invitation Homes (INVH)
• American Homes 4 Rent (AMH)
• Tricon Residential (TCN)
• Front Yard Residential (RESI)
• Starwood Waypoint Homes (SWAY)

Non-Traded Single Family Home REITs

There are also a number of non-traded single family home REITs available. These REITs are typically offered through private placements and have higher minimum investment requirements than publicly traded REITs.

Which Single Family Home REIT Is Right for You?

The best single family home REIT for you will depend on your individual investment goals and risk tolerance. If you are looking for a more liquid investment, you may want to consider a publicly traded REIT. If you are looking for a more long-term investment with the potential for higher returns, you may want to consider a non-traded REIT.

Conclusion

Single family home REITs offer investors a number of potential benefits, including strong demand for rental housing, diversification, passive income, and long-term growth potential. If you are looking for an alternative to traditional real estate investments, single family home REITs are worth considering.

FAQs

1. What is the difference between a single family home REIT and a multifamily REIT?

Single family home REITs own and operate a portfolio of single family rental homes, while multifamily REITs own and operate a portfolio of multifamily rental properties, such as apartments and townhomes.

2. What are the risks of investing in single family home REITs?

The risks of investing in single family home REITs include:

• Vacancy risk: The risk that the REIT will not be able to rent out all of its properties.
• Property value risk: The risk that the value of the REIT's properties will decline.
• Interest rate risk: The risk that rising interest rates will make it more expensive for the REIT to borrow money.
• Economic risk: The risk that a recession or other economic downturn will lead to a decrease in demand for rental housing.

3. How can I learn more about single family home REITs?

There are a number of resources available to help you learn more about single family home REITs, including:

• The National Association of Real Estate Investment Trusts (NAREIT)
• The Securities and Exchange Commission (SEC)
• Financial advisors

4. How do I invest in single family home REITs?

You can invest in single family home REITs through a variety of channels, including:

• Brokerage firms
• Financial advisors
• Online investment platforms