D.R. Horton is upping its play in the fast-growing home rental business.
The Arlington-based homebuilder is already building thousands of rental homes around the country. Now the builder plans to invest an additional more than $1 billion in its single-family home rental business.
Horton, America’s largest homebuilder, constructs the rental houses and sells them to investors and operators.
“In fiscal 2022, we expect our rental operations to generate more than $700 million in revenues from rental property sales,” Horton’s executive vice president, Mike Murray, told investors during this week’s earnings conference call. “We also expect to grow the total inventory investment in our rental platforms by more than $1 billion in fiscal 2022 based on our current rental projects in development and our significant pipeline of future single and multifamily rental projects.
“We are positioning our rental operations to be a significant contributor to our revenues, profits and returns in future years.”
Horton is one of several big U.S. builders that have jumped into the single-family rental business in response to growing demand. With many potential homebuyers priced out of ownership, some consumers are turning to rent houses as alternatives to traditional apartments...