trending Market Intelligence /marketintelligence/en/news-insights/trending/tt9rhpmja4isvqyyuwzgqg2 content esgSubNav
In This List

Invitation Homes sees opportunities in Zillow's move to buy and sell homes

Blog

Using ESG Analysis to Support a Sustainable Future

Video

S&P Capital IQ Pro | Powered by Expert Insights

Blog

Q&A: Streamlining Analytics for TCFD Reporting

Blog

Evergrande and the wider impact: a sentiment analytics based perspective


Invitation Homes sees opportunities in Zillow's move to buy and sell homes

Invitation Homes Inc., the largest single-family rental real estate investment trust in the U.S., views Zillow Group Inc.'s move to directly buy and sell homes as another channel of acquisitions for the company.

During Invitation Homes' first-quarter earnings call, Dallas Tanner, the company's executive vice president and chief investment officer, said Zillow's and Opendoor's nascent home buying and selling businesses could also provide Invitation Homes an opportunity to find new customers and possibly create a sale-leaseback program, in which homeowners sell their homes to Invitation Homes with the option of leasing them back.

In mid-April, Zillow announced that the company would expand its residential segment, Zillow Instant Offers, to Phoenix, in addition to Orlando, Fla., and Las Vegas. Invitation Homes owns homes in all three markets and is participating in the program.

In the same announcement, Zillow said it hired Arik Prawer, a former Invitation Homes executive, to oversee the business operations of Instant Offers.

Tanner said the Opendoor and Instant Offers technology platforms provide a viable option to home sellers who want to avoid selling their homes through traditional broker channels, similar to how some people prefer to use Uber over a taxi service.

Also on the call, President and CEO Fred Tuomi said Invitation Homes remains on track with its integration of fellow single-family REIT Starwood Waypoint.

Invitation Homes' new operating platform, which will be used to manage properties acquired in the merger as well as existing assets, is expected to go online in the second half of 2018, Tuomi added.