One of the hottest investment asset classes these days has been single-family rental properties. The attractiveness of the asset class is obvious: The inventory of available-for-sale homes is at record lows, and home price appreciation is in the double digits. This is attracting more competitors into the market. What does this mean for single-family real estate investment trust (REIT) American Homes 4 Rent (NYSE: AMH) ?
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Once a strictly "mom-and-pop" affair, the single-family rental business has become a focus for institutional investors. Historically, it was a highly fragmented industry, and since economies of scale seemed limited, it didn't easily lend itself to professionally managed money.
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American Homes 4 Rent Sees More Competitors Encroaching On Its Turf