Bruce Rose, CEO of Carrington Holding Co., was among the first investors to put institutional money into single-family home rentals, Bloomberg writes.
However, with home prices climbing and investors swamping the rental market, Rose believes it no longer makes sense to be a buyer.
"We just don’t see the returns there that are adequate to incentivize us to continue to invest," Rose explained. "There’s a lot of — bluntly — stupid money that jumped into the trade without any infrastructure, without any real capabilities and a kind of build-it-as-you-go mentality that we think is somewhat irresponsible."
HousingWire's Jacob Gaffney interviewed Rose in August, who hinted that Carrington would likely encounter some additional friction in the rental market on the road ahead of it.
"Virtually every high net-worth or single investor out there wants to buy a house and rent it out," Rose said. "And the market is seeing a lot of the private equity types, a lot of distressed real estate money flooding toward this asset."