As we look toward 2024, we’re reflecting on the growing importance of the single-family rental (SFR) industry. Our role in the housing market has never been more relevant, and we’re proud to provide high-quality homes in neighborhoods where people want to live in order to be near their jobs and great schools.
Our industry has faced challenges as it has grown and evolved, and though we provide a valuable option for people who want or need to rent, misleading or inaccurate narratives about the nature of our business persist. When put into context, however, many common claims against the SFR industry fall flat. In this blog, we address three of the most common misconceptions about our business.
Impact on homeownership
There are roughly 82 million single-family homes in the U.S., according to a 2021 estimate . The belief that Invitation Homes and our footprint of approximately 80,000 homes – about 0.1% of all single-family homes – could impact rates of homeownership in the U.S. simply doesn’t add up.
The U.S. homeownership rate in 2022 was 65.9%, a climb from its low of 63.7% in 2016 and below its 2004 high of 69.2%. Industry experts continue to point to two primary factors that are shutting would-be homeowners out of today’s market – lack of supply and high interest rates . Mortgage rates have increased from around 3 percent during the pandemic to highs of nearly 8 percent over the last year. Total housing inventory, meanwhile, fell to a record low late last year.
Tight supply, coupled with rising rates, means that homebuyers are competing for fewer houses. And, unfortunately, experts say prices will likely continue to climb . Invitation Homes aims to help address these challenges by providing quality homes for lease in neighborhoods where people can’t afford to buy right now, as well as by bringing new supply to the market through its build-to-rent efforts in select locations across the country.
Prioritizing fee transparency
The last thing we want is for residents to be unclear or confused about financial obligations when leasing with us. Being upfront and open about rent and any applicable fees better positions residents for success when searching for the right home and helps us build a stronger business in the long run.
We clearly outline all fees on our website, and when a resident signs a lease with us, all fees are clearly listed on the first page of the lease, with a total monthly obligation tallied at the bottom of the page. We take pride in maintaining open communication with residents and quickly resolving any issues.
When it comes to determining rent for our homes, we work hard to ensure that prices are fair and in line with local market factors like location, supply and demand, age and condition of the home, and cost of goods and services. We understand that residents have a number of choices when deciding where to live – that’s why we price our rents competitively in every market in which we operate.
Moreover, leasing continues to prove an affordable and valuable option for many in the current housing market. Recent estimates show that owning a home costs about $1,000 more a month than renting. Leasing can be an ideal option for many Americans who are transitioning between locations, aspire to homeownership, or simply prefer the ease that comes with renting.
Setting the standard for home maintenance
Maintenance is paramount not only for our business and its operations but to ensuring high levels of resident satisfaction. We proudly employ hundreds of skilled associates and work with thousands of vendors to keep our homes in the best condition possible. We conduct routine rehabs and maintenance to keep our homes in top shape.
We respond to more than 500,000 service requests from residents each year. And through our ProCare program, we engage with each home and resident at touchpoints throughout the year to ensure our homes are safe and functional. Invitation Homes is proud to say that our residents are overwhelmingly satisfied with and positive about their experiences—we average 4.69 stars on post-maintenance surveys and have a 4.38 average Google and Yelp rating.
As we look ahead, we will continue to put residents first and advance innovative processes and technology that will make leasing even smoother. Invitation Homes acknowledges the role we play in the broader housing market, and we’ll continue to be transparent about our mission and goals as a company.
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