WATCH: Why institutional money is saving grace for the rental market


Even as investors have slowed spending, single-family rentals are in a stable position and will likely help keep it that way, said Doug Brien of rental platform Mynd at Inman Connect.

WATCH: Single-family rentals expert says institutional capital is a good thing

WATCH: The flood of investor money is good for the single-family home rental market, an expert says

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Real estate experts have been talking of a market slowdown for some time as house prices and mortgage rates have given a number of homeowners a pause in the market.

But Doug Brien, co-founder and CEO of single family rental (SFR) platform Mynd, said during a panel at Inman Connect Las Vegas that the industry is still in a stable position, although investors have also softened in the SFR space .

“The industry — single-family home rentals — has just expanded,” Brien said. “If you just look at the trends, quarter after quarter, more and more institutional capital, more and more individual investors want to invest in real estate and companies like Mynd are making it easier.”

“Investors are still there, but they’re definitely being impacted by rates,” Brien added.

Amid SFR’s rapid growth in recent years, panel moderator and Inman reporter Jim Dalrymple II also pointed out that some in the industry are critical of investors buying large sections of homes in the US and potentially price volatility in the US Market contribute because these institutional investors can afford to pay higher prices. But Brien disagreed, arguing instead that investors create stability in the market during uncertain times like the 2008 financial crisis.

“I don’t know if I totally agree with that,” Brien said. “One thing that I firmly believe would be the opposite of volatility is really stability — if you look at what happened in the foreclosure crisis, when all these loans defaulted and there was literally nobody to buy — that was the Impetus for the creation of this industry.”

“Now that institutions are renting single-family homes and building positions, you can look at a lot of different industries — when institutions come, they don’t back out,” he continued. “So now you have this wall of capital that would always be there if prices fell as much as they have for one reason or another.”

Dalrymple wondered if corporations that now own such a large percentage of homes in the US were preventing ordinary Americans from participating in the American Dream, but Brien disagreed, saying instead that it offered an alternative to that dream since many young People today are delaying home buying and want to move around more easily.

“I think there’s kind of a rethink going on about the American Dream right now — it’s not that people don’t want or shouldn’t want to own a home, we’re just people who are delaying that decision for a number of reasons.”

See how the conversation ended by watching the video above.

Email Lillian Dickerson


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