(Bloomberg)—Invitation Homes Inc., the largest single-family landlord in the U.S., accelerated rent increases across its portfolio of more than 80,000 properties as the pandemic continued to stir demand for suburban housing.
The company raised rents 7.9% on new leases, according to a statement on Wednesday. That’s the highest increase on record, according to Bloomberg Intelligence. It follows a 6.9% increase in the prior quarter.
The company posted funds from operations that beat estimates and raised its forecast for the year on the key metric. Its shares were up 1.4% at $34.61 as of 9:53 a.m. in New York. The stock had gained 15% this year through Wednesday’s close.
Invitation Homes, which also reported record occupancy and retention rates, has benefited from a pandemic that created new demand for suburban homes. It increased rents by an average 4.4% when tenants renewed their leases.
Capital has been flooding into the single-family rental industry as investors look for ways to invest behind the shift to the suburbs, especially as surging home prices push ownership out of reach for many Americans.
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