International investor drops $1B on Sunbelt single-family rentals

Partners Group just picked up a $1 billion portfolio of single-family rental properties in Texas and 16 other 17 Sunbelt states.

The 3,500-home portfolio includes 2,528 new constructions and more than 1,000 in the works, primarily in Texas, Alabama, Georgia, and Oklahoma. Behind the billion-dollar move, Partners cited the vast migration of remote workers to the region looking for more space during the pandemic, driven by its “high job growth rates, relative affordability, and favorable climates.”

“Millennials are raising families at a time when the high costs of living and a chronic undersupply of housing are making purchasing a home difficult for many,” said Managing Director Ron Lamontagne in the announcement.

“A rising number of companies are locating or relocating to the Sunbelt from more expensive and high cost, high tax metro areas,” added Scott Egarian, another member of Partners Group’s management team. “As a result, the target demographic for the Portfolio, which typically includes young families with stable incomes that are looking for more space, is growing.”

With this acquisition, Partners Group intends to “capitalize on the​​ fragmented nature of the single-family rental market.”

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Texas

Invitation Homes to launch $750M venture in North Texas single family rental market

Residential

Texas

Austin’s housing bubble is set to burst soon, according to experts

Yes, investors love the Sunbelt, but Texas is the standout.

Last year, about 40 percent of existing single family homes sold in Houston’s Harris County went to investors, one of the highest percentages in the country. Last quarter, investors poured almost $13 billion into Dallas-Fort Worth properties — more than double the investment volume in the first quarter of 2021, according to the Dallas Morning News.

The monthly rent for newly available apartments in Austin almost doubled since April 2021 —the highest year-over-year rise in the nation, per recent Redfin data. Lagging wages and skyrocketing prices have stirred up conversations of a housing bubble in the Texas capital.

“Austin is arguably in the largest housing bubble in America based on the fundamental data,” said Reventure Consulting CEO Nicholas Gerli.