Morgan Stanley Predicts Buy-To-Rent Boom

From RealTrends.com: The buy-to-rent market is only a fraction of what it could be, according to a research report from Morgan Stanley. And, the investment bank sees four possible ways to get in on the action.“We believe today’s ~$17B institutional BTR industry can continue growing and perhaps reach over $100B over the next several years,” said the latest Morgan Stanley housing research report.

The analysts called the market a “sustainable business with a long runway for growth,” due to several factors.

For one, demand for homeownership is dropping and expected to continue. This will drive up rents. In fact, institutional investors could rightfully anticipate a greater than 10% return on investments. And while the distressed inventory is low, it is sizable enough to meet investor demand.

Read more: Morgan Stanley predicts buy-to-rent boom | 2013-07-31 | Housingwire