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Comment by iknowSFR | Hacker News Reader

This entire comment lacks evidence or data to support it but I used to work in SFR and still keep tabs with several companies on a personal basis.

Redfin and Zillow are not the problems in the SFR industry. These are tech companies that were trying to capitalize on the PE flowing into SFR. Their lack of success is not an indicator for the industry as a whole.

Make no mistake about it: SFR is alive and well and increased rates will not hurt them. Most have paused acquisitions but their cash flow is still fantastic. The outcomes over the next 24 months will play in their favor and those companies will grow as the economy pulls back.

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I recognize you have a username that implies that you know a thing or two about this SFR space, but I don't think anyone here is saying that redfin/zillow/etc are the problem with single family rentals, because they are.... not in single family rentals.

Rentals, and trying to quick-flip properties, are different business models.

I think your point about SFR is correct, but it seems off-topic and confusing/misleading in the current discussion context.

Zillow and Redfin are simply bad at this business. Companies like Blackrock are not.

LEN and KBH are both up today. Does this have something to do with the election?

How can it be that the economy pulling back works in their favor, as you say?

Pension funds want to mitigate risk and rental cash flow is a reliable and proven way to do it. When the economy pulls back, these funds will look for solid cash flow options. SFR, like a REIT, is a good choice. When money flows in, this will be used to acquire additional homes.

In short, pension funds looking to de-risk in equities will move towards SFR. This isn’t US-only, but the SFR will be US-only. So expect EU nations that allow their pensions to investment in US assets to move more money towards SFR. The number of homes managed under institutional SFR will grow substantially in the coming years.

They know in the worst case they can depend on a bailout.

What is SFR?

Likely means single family rental

This is the correct answer

Single-Family Residential

I had no idea - it came up fifth in my web search.

http://realtorsfr.org/about/

> short sales and foreclosure resource

Apparently an industry insider term (and a trademarked one at that.)

Single-family residential/real estate.

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