Big news in the North Texas real estate market, as awareness of a new institutional investor spreads across communities. Billionaire B. Wayne Hughes, founder of Public Storage, and the newly-founded American Homes 4 Rent, has recently purchased close to 200 homes in the Dallas market and with plans to turn all of them into rental properties.
American Homes 4 Rent is now the largest institutional investor in North Texas covering Dallas, Collin, Tarrant and Denton counties. Aside from the monopoly being created in the metroplex, nationwide American Homes 4 Rent has purchased close to a further 10,000 homes. This makes it the second-largest accumulation of single-family homes in the history of the USA.
Due to the aggressive collection of homes, this investment is creating a shift in the real estate economics in the North Texas areas. The current market is already a "seller's market" making the demand for rental homes snowball significantly, making rental rates higher than the homes are worth. At the same time this is attracting more investors, which in the long run, tightens up the already small supply of purchasing options.
Communication among real estate resources, hint that American Homes 4 Rent is more than likely to eventually sell off the homes as soon as home prices rebound.