Jeff Bezos-Backed Real Estate Investment Platform Acquires Another $23 Million Worth Of Single-Family Rental Homes
Arrived Homes, the single-family real estate investment platform backed by Amazon.com Inc.(NASDAQ: AMZN) founder Jeff Bezos, is ramping up its acquisitions as demand from retail investors grows stronger for fractional real estate.
In the past 30 days, the platform has fully funded approximately $11 million worth of rental properties, compared to $5 million for the entire first quarter of 2022. The number of investors using Arrived Homes has doubled in the last two months, making it difficult for the company to purchase enough homes to meet demand.
Early last month, new investors flooded the Arrived Homes website when a new batch of 12 properties launched on the platform, causing the site to crash for almost three hours. The following batch of new properties added later that month was fully funded in only eight minutes.
Arrived Homes has since acquired 59 properties across 17 markets in the last 30 days, with a total value of about $23 million.
The company has experienced rapid growth since its launch last year, largely due to it being one of the few real estate investment platforms available to non-accredited investors. The company funded 51 homes on its platform during the last eight months of 2021, with approximately $18.5 million in property value. So far in 2022, Arrived Homes has already funded over $30 million worth of rental properties.
Arrived Homes caught the attention of some high-profile investors early on. Jeff Bezos invested in the company’s $37 million seed round last June through Bezos Expeditions and recently made a second investment during the company’s $25 million Series Around.
Single-Family Rental Market
Investors have a growing appetite for single-family homes, which is no surprise considering that the average rent in the U.S. has increased 16.4% in the past 12 months and as high as 32% in cities like Miami over the same period, according to data from Housing Tides.
While the housing market is beginning to cool down in certain areas, homeownership is becoming even less affordable as higher interest rates are adding to the overall cost of buying a home. This is likely to continue adding strain to the supply of rental units, resulting in further rental rate increases.