The real estate company backed by Jeff Bezos is in the process of buying single-family homes
The real estate investment platform backed by Amazon.com Inc. AMZN founder Jeff Bezos continued to ramp up its single-family rental home acquisitions in several US markets.
Homes arrived acquires single-family homes to use as rental properties and then sells shares of those properties to investors through its online platform. Demand for rental property stocks has grown exponentially so far in 2022, with more homes financed in July than in the entire first quarter.
The company has investment properties in 19 of the top 100 US cities by population growth and estimates it will expand to 40 of the top 100 cities by the end of the year. More recently, Arrived Homes has expanded to Nashville, Cincinnati and Indianapolis.
The investment platform is now able to take advantage of the housing market downturn to ramp up its purchases at a time when a growing number of investors are looking for alternative investment options outside of the stock market.
About Arrived Houses
Arrived is the first SEC-qualified real estate investment platform that allows virtually anyone to purchase equity in single-family rental properties with investment amounts ranging from $100 to $10,000 per property.
The company acquires rental properties and allows individual investors to become owners of the properties by buying shares through the platform. Arrived Homes manages the assets, while investors earn passive income through quarterly dividends in addition to earning a return through appreciation.
The company quickly caught the eye of several high-profile investors during its 2021 seed round, securing investment from Jeff Bezos, via Bezos Expeditions, Salesforce.com Inc. RCMP founder Marc Benioff through Temporal enterprisesancient Zillow Group Inc. Z CEO Spencer Rascoff and Uber Technologies Inc. UBER CEO Dara Khosrowshahi.
Bezos then followed that investment in Arrived Homes’ $25 million Series A earlier this year, making a second investment in the real estate investment platform.
Single-family rental market
Investors have a growing appetite for single-family homes, which is not surprising given that the average rent in the United States has increased by an average of 16.4% over the past 12 months and up to 32% on markets like Miami over the same period. .
As the housing market begins to cool in some areas, home ownership is becoming even less affordable as higher interest rates add to the overall cost of buying a home. This should continue to weigh on the supply of rental accommodation, leading to further increases in rental rates.
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Photo: Courtesy of Arrived Homes
Original publication: July 26, 2022