September 25, 2020
The single-family rental sector has been riding high in leasing and occupancy during the COVID-19 pandemic. But David Singelyn, CEO of American Homes 4 Rent, doesn’t expect demand to taper when the pandemic subsides.
“The demand for single-family rental is not new,” Singelyn told CNBC Thursday. “COVID has accelerated it, but I don’t see it changing in the future. People realize, more than ever, the value proposition of single-family rentals.”
He acknowledged that amid the pandemic, bad debt among renters has seen “a slight uptick.” Yet, the company’s portfolio of 53,000 rentals—currently 96.4% occupied—is geared toward neighborhoods with lower-than-average unemployment rates.
Accordingly, said Singelyn, “In light of the difficult times, we’re seeing relatively favorable collection results that are improving over our second-quarter results.”
Although supply is an issue across the spectrum of single-family homes, “we’re very comfortable” with the level of supply for rentals, Singelyn told CNBC
Pictured: American Homes 4 Rent’s Creekside Ranch in New Braunfels, TX.
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