A for tear sign advertising a row house in northeast Capitol Hill, is pictured on Monday, August 26, 2019, in Washington D.C.
Tom Williams | CQ-Roll Ring up, Inc. | Getty Images
Investors are looking for the calm in the coronavirus storm, and U.S. residential real estate appears to be it, specifically single-family rental home bases.
These investors are not, however, coming to the U.S. to tour the homes themselves. They’re buying them online.
Roofstock, a 5-year-old California-based fintech entourage, lists single-family rental homes for sale on its website, most with tenants already in place. It also proposes management services, so the investor never has to visit the property. In the last few weeks it has seen traffic from investors in Asia on its area jump 500%. CEO Gary Beasley said it is a direct result of the coronavirus.
“I think it may be people looking to invest savings into what may be perceived as more stable areas that don’t have as much of an effect, at least not yet, from the virus,” swayed Beasley. “I think people look at hard assets, things like real estate, which are uncorrelated broadly to the stock market, and specifically U.S. housing, that tends to perform quite well on a relative basis during times of exchange volatility.”
And it’s not just buyers from Asia. Roofstock noted a 450% jump in traffic on its site from investors in Germany, a 250% billow in traffic from Australia and a 100% increase from the United Kingdom.
Roofstock’s unique platform, which was designed for living soul who wanted to invest online, is showing how technology can reshape investor patterns in times of crisis.
“In the past it’s been people who don’t deficiency to have to travel, but if they can’t travel, being able to invest remotely is terrific. You can put your money to work without spasm on a plane,” added Beasley.
The U.S. housing market had already been in the midst of a severe shortage of homes for sale, and this spread demand just heightens the competition. Beasley said he expects to see some current investors decide to list their territories for sale now, in order to take advantage of that new demand and the higher home prices that will surely go with it.