Recent headlines in the mainstream press have alluded to a shift in the housing market. In several instances during the past few weeks, the dismal tone that has become the standard for housing market discussions has yielded to conversations on an emerging trend: large-scale acquisitions of distressed single-family homes being repurposed (in the near term at least) for rental, that is, rent-to-buy.

Historically, rent-to-buy has been a fragmented business restricted largely to individuals buying and renting out second homes as vacation homes. Now, the numbers that are trickling in point to a new trend among sophisticated real estate investors. For example, a June article in USA Today mentioned one fund’s plans to invest more than $1.5 billion in buying and renting single-family homes, and that the fund had already acquired more than 1,000 homes in Arizona, California and Nevada. In May, The Wall Street Journal published an article about a large homebuilder and another large investment fund forming a private REIT to pursue this strategy in those markets as well.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.



Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join now!

  • Free unlimited access to's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.