Zillow's homes portfolio attracts takeover interest
Zillow (Nasdaq: ZG) is receiving takeover interest in its multibillion-dollar homes portfolio, just days after abandoning its digital home buying-and-selling program.
Why it matters: This could swell America's home rental stock and depress its number of homes for sale, as the reported suitors are large institutional landlords.
Interested suitors, per WSJ, include American Homes 4 Rent (NYSE: AMH), Invitation Homes (NYSE: INVH) and Pretium Partners. It's unclear if the portfolio, including homes under contract but not yet purchased by Zillow, will be sold in one transaction or piecemeal.
The bottom line: "The same rush on the suburbs that helped boost home prices 20% nationally in the year ending in August has trickled down to the rental market. With home prices hovering near highs, many families have determined the most realistic option for living in a coveted suburban neighborhood with good schools is to rent from one of the big investment firms." — Will Parker, WSJ