JLL IPT To Invest $500M In SFR Market As Industry Regulation Faces Roadblock

Institutional Investors Have Been Buying Up Single-Family Homes, Pushing Overall Pricing Skyward.

JLL Income Property Trust waded deeper into the single-family rental trend, launching a new program that plans to acquire up to $500M in single-family homes over the next two years, alongside development and operating platform Amherst.

JLL will hold a 95% ownership in the venture, with Amherst holding the remaining 5%.

"Single-family rental homes are one of our highest conviction property sectors given numerous tailwinds that should provide resilient demand and the potential for attractive rent growth within this carefully selected portfolio," JLL Income Property Trust President and CEO Allan Swaringen said in a press release.

This isn't the first time JLL and Amherst have teamed up on residential property. Previously, JLL acquired a 47% interest in a 4,000-home portfolio in which Amherst was a partner and operator.

Investment in SFR reached an apex last year, when Blackstone dropped $6B to acquire Home Partners of America — a company that owned over 17,000 homes across the United States.

The level of investment by institutional investors in the SFR market has spurred legislative action, but changes in leadership in the U.S. House of Representatives may stifle any potential roadblocks in the works.

A bill introduced in October by California Democrats, dubbed the “Stop Wall Street Landlords Act,” is meant to reign in the corporate ownership of SFRs by targeting companies with $100M in assets with taxes on their transactions.

However, now that the Republicans have gained control of the House, speculation has grown over whether such a bill will even reach the floor, according to comments made to Business Insider by Green Street Senior Vice President Tyler Blue.

Blue also noted that as the size of SFR investments continues to grow, the conversation about regulating the industry isn’t likely to stop anytime soon. 

CORRECTION, NOV. 11, 11:35 A.M. PT: This story's headline has been updated to better reflect that JLL Income Property Trust is involved in the SFR investment.

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