While the commercial real estate industry has suffered greatly due to the Coronavirus related restrictions and economic downturn, residential real estate and single family rental homes (SFR) specifically, are well positioned to weather the COVID-19 pandemic. Shelter in place orders and ongoing social distancing recommendations will continue to impact our lives, behavior and economy for the foreseeable future. During these difficult times Americans will continue to prioritize essentials like food and shelter.
Over the past decade U.S. housing construction did not keep pace with household formation resulting in an undersupply of affordable housing. This undersupply in affordable housing, combined with the desire for space and separation from neighbors creates a strong natural demand undercurrent for SFR. However, in the current environment more rental households than usual will have difficulty paying their rent. Landlords ability to meet their own financial obligations will also be challenged as a result of rental payment shortfalls (i.e. payments of mortgages, taxes, insurance, maintenance, payroll, overhead etc). Many beneficial solutions for renter households have emerged including stimulus checks directly to citizens and enhanced unemployment benefits, however legislation focused specifically on rent relief for renters and landlords has not meaningfully materialized. This challenging environment may cause highly levered and/or underperforming operators to stop expansion/exit and could lead to consolidation in the SFR industry.
VineBrook Homes was founded in 2007 with a focus on residential real estate. VineBrook currently owns and manages approximately 8,000 single-family rental homes across the Midwest, Heartland and Southeastern United States. VineBrook is vertically integrated with over 200 professional employees staffed across our markets in acquisitions, construction management and property management roles. Our current markets include; Cincinnati, Columbus, Dayton, Indianapolis, Jackson, Kansas City, Little Rock, Memphis, Milwaukee, Omaha, Pittsburgh, and St Louis.
VineBrook Homes is actively buying homes during the Coronavirus pandemic. Our strong balance sheet and professional processes allow us to complete deals efficiently and expeditiously with all cash offers and two week average time to close from accepted offer. We target homes with values under $150,000 and rents between $800-1300/ month. If you are interested in selling a home or a portfolio of any size please send us an email at firstname.lastname@example.org