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Lance Lambert reports that Invitation Homes has connected the recent slowdown in build-to-rent (BTR) deals to its current cost of capital.
When the cost of capital is high, raising equity or debt for new purchases becomes more expensive, which can serve as a signal that anticipated returns on new investments may be under pressure.
Lambert has recently covered other major housing developments, including Berkshire Hathaway's $8.5 billion acquisition of homebuilder Taylor Morrison. He also reported that single-family home prices in the Seattle metro fell 2.2 percent year-over-year, based on new Freddie Mac data. Both updates reflect shifts in the housing market this year.