Atlanta Alarm?

Introduction

Parcl Labs provides real-time data, mapping institutional ownership throughout the full SFR home lifecycle—from acquisition and rental to sale. Our capabilities enable daily tracking of SFR market activity, from the performance of major operators to market-level trends.

We've focused on Atlanta as a key market due to the significant presence of large SFR operators. The following report examines their heavy concentration in Atlanta and the emerging impacts of this trend.

Executive Summary

• Institutions own 3.4% of U.S. single-family homes.
• The largest SFR operators focus heavily on Atlanta.
• Large operators have acquired over half of their Atlanta properties since 2020.
• 30% of large operators' Atlanta portfolios concentrate in just 11 zip codes.
• In their most concentrated zip codes, large operators own over 10% of single-family homes.
• Large operators outperform smaller competitors in Atlanta's SFR market.
• Recent sales listings indicate mom-and-pop operators may be losing ground.
• The Atlanta case reveals the outcomes when companies use similar inputs to make similar decisions in the same time and place. Differentiated data is crucial. Contact Parcl Labs to gain your SFR alpha today.

Atlanta Market Findings

Institutions own 3.4% of US single-family homes

Nationally, 3.4% of all single-family homes are owned by entities with at least 10 units in their portfolios. For operators with 1000+ units, this figure stands at 0.73%. In this report, we define "large operators" as entities holding 1000+ units, and this cohort includes well-known SFR names like Invitation Homes, Progress Residential, Tricon and American Homes for Rent.

The largest SFR operators are heavily concentrated in Atlanta

Large operators do not evenly disperse their portfolios across the US — they focus on markets with favorable economic conditions and demographics that are a good fit for their SFR product.

Atlanta is a clear outlier, with 13.3% of large operators' total portfolios concentrated in its housing market. That is, of all properties across the US owned by the large SFR operators, roughly one out of every eight is located in Atlanta. For context, Atlanta's 13.3% concentration of properties from large SFR operators is more than double the next closest market, Dallas, at 5.4%.

1000+ Portfolio Concentration:

Large operators have acquired over half of their Atlanta properties since 2020

The concentration of large operators in Atlanta is not a gradual, long-term trend. Instead, it has emerged as a more recent phenomenon, likely stemming from a similar set of considerations and strategic decisions that converged to the same conclusion around the same time.

The chart below clearly demonstrates a marked acceleration in acquisitions by large operators in the Atlanta region over the recent years. Over 50% of large operators’ current portfolio in the region has been acquired in just the past three years, highlighting a sharp and recent shift in their investment strategy towards this market.

30% of large operators’ Atlanta portfolios are concentrated in just 11 zip codes

Large SFR operators haven't just converged on the Atlanta metro area as a whole within a similar timeframe — they've zeroed in on the very same set of zip codes within it.

The map below illustrates the zip code-level concentration of large operators in Atlanta. Eleven zip codes account for 30% of the entire Atlanta portfolio. For context, there are 238 zip codes in Atlanta. In other words, less than 5% of all Atlanta zip codes contain 30% of the entire portfolio.

The ZIP codes, rank-ordered based on concentration, are: 30016, 30135, 30349, 30253, 30052, 30157, 30281, 30039, 30058, 30134, and 30132.

Why Does This Matter? The Actions of These Operators Are Reshaping the Atlanta Housing Market.

Large operators own over 10% of single-family home stock in their most concentrated zip codes

The section above shows that SFR operators have focused their efforts in specific Atlanta metro areas. The map below reveals the impact of this strategy on single-family home ownership across Atlanta. Large operators now own over 10% of homes in many of these zip codes.

In Atlanta, the top ten zip codes where major home operators have the highest ownership concentration are 30088, 30035, 30058, 30134, 30291, 30253, 30034, 30016, 30039, and 30157, with percentages ranging from 10.4% to 12.8%.

Large operators dominate smaller competitors in Atlanta's SFR market.

While large operators compete amongst themselves, they also contend with smaller regional businesses and local mom & pop ventures. In Atlanta, these large operators account for about 45% of all recent single-family rental activity, boasting a commanding presence in over 50% of rental listings in 31 zip codes.

Recent listing for sale activity suggests that mom & pop operators might be getting edged out

Much has been discussed regarding how smaller mom & pop operators might respond to current macroeconomic pressures in the housing market. This analysis begins to shed light on their response in markets overshadowed by larger entities.

In zip codes where large operators dominate (left side), there's an uptick in listings for sale from smaller operators managing 2 to 9 properties (right side). Remarkably, in some of these areas, these smaller operators account for 1 in every 5 homes on the for sale listing market.

Contact Parcl Labs to capture your SFR alpha

Parcl Labs provides detailed, real-time insights into SFR entities and their activities, covering national, market, neighborhood, and unit levels. The map below highlights the homes owned by large operators in a designated Atlanta zip code 30088, where these operator groups possess 13 percent of the properties.

If you operate or invest in SFR, Parcl Labs is an unparalleled resource for comprehending the market landscape, tracking competitor actions, and understanding granular housing trends that influence your business.

Discover how you can gain your SFR advantage by reaching out to us today.