Pretium’s Housing Insights, October 2022


Pretium’s Housing Insights, October 2022

October 26, 2022


Investor activity in housing had no discernible impact on homeownership during the pandemic

The stock of single-family rental housing has been falling in recent years

One of the more persistent housing narratives to emerge during the pandemic is that a dramatic increase in investor activity has limited the ability of aspiring homeowners to purchase single-family homes. As widespread as this narrative is, it doesn’t stand up to basic scrutiny. The US homeownership rate rose through the pandemic at the same trajectory it was rising pre-pandemic (Exhibit 1). As of 2Q22, the homeownership rate reached 65.8%, up 170 bps from 2Q19 and above the long-term average of 65.2%. If investor activity has been crowding out individual home purchases the homeownership rate would have at best been flat or potentially declining.

Also, recently released data from the Census indicates that the total stock of single-family rental units fell by more than 100,000 to 14.3 mm in 2021 from 2019; by contrast, the stock of single-family owned homes increased by 4.5 mm during the same period (Exhibit 2). In the single-family market investor activity during the pandemic appears to have created no impediment for owner-occupiers. In 2022, investor activity in the housing market has slowed along with the purchase market and in the coming years we would expect it to continue to have little to no impact on owner-occupier trends.

The narrative about investor activity and homeownership largely rests on new data released during the pandemic that portrays record levels of investor buying in 2021; however, this data is far from conclusive. It is directly contradicted by other analyses that show investor buying was at historically normal levels during the pandemic and in fact has been falling in recent years. Even if investor buying trends could be accurately captured, it would only tell half the story. It is equally as important to consider investor sales – a recent study found the smaller investors sold 50% more homes in 2021 than they bought. Since smaller investors hold roughly 97% of single-family rental homes, this helps to explain why single-family rentals fell as a share of the overall housing stock during the pandemic.

If anything, the data argues that more investment in single-family rental housing is needed. The Harvard Joint Center for Housing Studies recently found that rental housing options are most lacking in suburban, single-family neighborhoods. Not only will increased investment in single-family rentals broaden access to the opportunities that high quality single-family housing brings for its residents; but also, increased investment is necessary to resolve US housing’s overall supply shortage.

1. Redfin and CoreLogic Investor Buying Analyses, both as of August 2022..
2. National Association of Realtors, “Impact of Institutional Buying on Home Sales and Single-Family Rentals”, May 2022; Freddie Mac, “What Drove Home Price Growth and Can It Continue?”, June 9, 2022.
3. CoreLogic, “Small Investors Chose to Sell Properties Rather than Rent Them During the Pandemic”, September 5, 2022.
4. Pretium calculations based on John Burns Real Estate Consulting Single-Family Rental Properties by Large Operator data, retrieved October 2022 and US Census, American Community Survey 1-Year Estimates, 2021.
5. Harvard JCHS, “Rental Deserts Perpetuate Socioeconomic and Racial Segregation”, August 4, 2022.

This is not an offer, advertisement, or solicitation for interests in any Pretium managed vehicle and should not be construed or relied upon as investment advice or as predictive of future market or investment performance. Past performance is not indicative of future results.

Key Takeaways from Pretium’s 2022 Investor Symposium


Pretium Investor Symposium

September 13-14, 2022

This September, we hosted nearly 300 investors at our 2022 Investor Symposium in New York City. Leading experts in real estate, residential debt, and credit discussed industry trends as well as the global economic landscape. The headline: there are a number of forces at play in the global real estate and credit markets that are relevant to investors now and as we head into 2023.

A Rising Rate Environment

Perhaps the most salient of these forces is rising interest rates. The scale and speed of the Federal Reserve’s rate increases have pushed up U.S. mortgage rates, leading to an expected deceleration in home prices, with prices in some markets already flattening or beginning to fall. Apart from the impact of rate increases, housing market fundamentals in the U.S. remain strong, with persistent outsized demand, limited supply, strong credit quality, rental growth, and record levels of home equity.

In fact, the $28 trillion in existing home equity in the U.S. is the largest such buildup in the last 40 years. This is expected to mitigate the risk of forced selling and thus support stable home values, unlike what was experienced during the global financial crisis of 2008.

Disruption is also occurring at the mortgage company operating level. During this period of dislocation, mortgage-company stocks are significantly down, and spreads on loans have widened. Once the Fed-induced volatility in rates markets subsides, however, mortgage spreads and lending conditions should normalize.

The Ongoing Growth of Rentals

Opportunities are likely to emerge in real estate and specifically single-family rentals (SFR) as the housing market adjusts to the rising rate environment. SFR yields should rise as rent growth outpaces home price appreciation, which is more affected by Fed tightening. This would represent a reversal of cycle-to-date trends. Build-to-rent (BTR) is also likely to see compelling opportunities emerge as US homebuilders act to reduce unsold inventory backlogs that grew at a faster than normal pace due to pandemic supply-chain disruptions. Even with higher-than-normal builder inventories, single-family housing’s overall supply-demand imbalance persists and should remain an important dynamic in the post-pandemic housing market. Single-family construction has once again fallen below long-term averages; meanwhile, the pandemic has unleashed a long-term structural increase in demand for single-family housing driven by phenomenon such as work-from-home and increased migration. These factors point to SFR as an investment opportunity—and at an attractive entry point.

The Residential Credit Investing Landscape

Strong fundamental loan performance driven by substantial home equity and strong lending standards continues to provide good support for the Residential Credit market.  Investment opportunities remain strong in nonperforming loans, subordinate bonds, nonagency origination, and mortgage servicing rights.  Disruption from higher rates and wider spreads is reducing competition in the nonagency mortgage origination space and will reward vertically integrated platforms.  The aging housing stock will continue to drive the need for residential credit transition loans to sophisticated operators.

Opportunities in Structured Credit

Investors continue to see opportunities in structured credit, as the market has transitioned from a niche to a strategic/core asset class capable of generating double-digit returns. As panelists emphasized, collateralized loan obligations (CLOs) now represent a trillion-dollar market that represents 40% of high-yield corporate debt markets.  CLO issuance is set to experience the second-highest issuance year on record despite a worsening arbitrage environment as investors seek leveraged exposure to a recovery scenario.

During periods of volatility and price dislocation, participants increasingly pivot to secondary markets. The volatility and dislocation are expected to continue, which broadens the opportunity set for credit investment in the next 12 months. Many are relying on defensively positioned portfolios with longer reinvestment periods to maintain dividends through a recession while providing freedom to opportunistically build par and excess spread when market conditions allow.

A Boost from Technology

Technology was another key theme of the symposium. Not only does it allow managers to make more informed, data-driven decisions, but it also is enabling change at the operational level.  Technology helps attract and retain residents while fostering transparency in vendor services. A customer-first mindset and continuous tech improvements in SFR, for example, are mobilizing resources in real-time, giving a boost to resident experiences and ultimately investor returns. As smart homes and home services become more accessible, panelists predicted that innovations, such as “homes as software,” will provide more predictable and controlled living experiences. Meanwhile, as the digital economy expands and the value of technology appreciates, intellectual property (IP) assets have grown in importance, creating investment opportunities in the data and privacy litigation space.

Don’t Wait for Market Clarity

Though the markets are currently volatile, participants are not waiting around for them to calm. Instead, they’re staying nimble and seizing opportunities in the market disruption. As the symposium revealed, there are many investment opportunities to be uncovered, but working with a well-established, vertically integrated asset manager is key to accessing value.

As we celebrate our 10th Anniversary, the valuable insights gained within the context of our global market trajectory make it clear that Pretium is well positioned for the future across all our strategies.

Crescent Communities Hosts Groundbreaking Event for Build-to-Rent Communities in Charlotte


Crescent Communities Hosts Groundbreaking Event for Build-to-Rent Communities in Charlotte

October 17, 2022

A Celebration for HARMON Ballantyne and HARMON Five Points Took Place September 28

CHARLOTTE, NC and NEW YORK – October 17, 2022 – Crescent Communities and Pretium are pleased to celebrate the groundbreakings of HARMON Ballantyne and HARMON Five Points, two build-to-rent (BTR) communities under construction in Charlotte as part of the companies’ joint venture and commitment to invest $1 billion in new single-family build-to-rent communities across 14 key strategic growth markets. The groundbreakings took place on September 28.

“We’re thrilled to celebrate the entry of the HARMON brand in Charlotte by officially breaking ground on HARMON Ballantyne and HARMON Five Points,” said Tony Chen, Managing Director of Single-Family Build-to-Rent at Crescent Communities. “HARMON Ballantyne and HARMON Five Points bring infill housing options to Charlotte providing its residents the opportunity to lease brand new homes in highly sought-after neighborhoods without the long-term commitment and high upfront cost of homeownership. We look forward to seeing the progress on these communities and are excited to share construction updates in the coming months.”

“Pretium is committed to being a leading part of the solution to address the nationwide housing shortage, and our build-to-rent partnership with Crescent to develop and operate rental communities across the country is part of those efforts,” said Matt Johnston, Managing Director and Head of Build-to-Rent at Pretium. “The HARMON Ballantyne and HARMON Five Points communities demonstrate our dedication to providing affordable, modern housing in the rapidly growing communities where it is needed most. We look forward to continuing to ensure our residents have access to high-quality single-family homes.”

Both communities will offer townhomes ranging from 3 to 4 bedrooms each with private garages, driveways, and balconies. Located at 15825 Marvin Road, 13 miles south of Charlotte’s central business district, HARMON Ballantyne will bring 60 residences to the Ballantyne area, which has experienced noticeable growth in recent years and offers access to a broad range of amenities, including shopping, dining, schools, and recreation opportunities. HARMON Five Points will offer 76 residences located at 360 Seldon Drive in the West End neighborhood. The community will have a direct trail to the playground at Five Points Park and is in proximity to the Irwin Creek Greenway and Gold Line Streetcar for easy access to Uptown. HARMON Five Points is expected to offer pre-leasing winter of 2022 and HARMON Ballantyne in fall of 2023.

The groundbreakings add to Crescent Communities’ continued commitment to expanding its footprint in Charlotte. The company has also announced the development of multifamily communities NOVEL Mallard Creek and NOVEL University Place, both of which are currently under construction, the groundbreaking of NOVEL Ballantyne, and the sale of NOVEL LoSo Station to MAA.

Crescent Communities continues to experience significant growth with $7.6 billion of residential and commercial investments and developments currently under construction, operations and planning including 15,700 units of multifamily / single family build-to-rent, 200,000 square feet of complementary retail, and 11.1 million square feet of office, industrial and life science. With a focus on environmental sustainability and wellness, the organization pursues certifications including LEED, NGBS (National Green Building Standard), Fitwel, and WELL.

Additional details surrounding the communities will be announced at a later date. Renderings are available here, and photos from the groundbreaking are available here.  

About Crescent Communities

Crescent Communities is a nationally recognized, market-leading real estate investor, developer and operator of mixed-use communities. We create high-quality, differentiated multifamily and commercial communities in many of the fastest growing markets in the United States. Since 1963, our development portfolio has included more than 77 multifamily communities, 24 million square feet of commercial space and 60 single family master-planned communities. Crescent Communities has offices in Charlotte, DC, Atlanta, Orlando, Nashville, Dallas, Denver, Phoenix and Salt Lake City. Our residential communities are branded NOVEL, RENDER and HARMON by Crescent Communities and our industrial developments are branded AXIAL by Crescent Communities.

About Pretium

Pretium is a specialized investment firm focused on U.S. residential real estate, residential credit, and corporate credit. Pretium was founded in 2012 to capitalize on secular investment and lending opportunities arising as a result of structural changes, disruptions, and inefficiencies within the economy. Pretium has built an integrated analytical and operational ecosystem within the U.S. housing, residential credit, and corporate credit markets, and believes that its insight and experience within these markets create a strategic advantage over other investment managers. Pretium’s platform has approximately $50 billion of assets and employs more than 4,000 people across 30 offices, including London and Dubai. Please visit for additional information.


Crescent Media Contact
Lauren Alligood

Pretium Media Contact
Jon Keehner / Lyle Weston / Erik Carlson
Joele Frank, Wilkinson Brimmer Katcher

Crescent Communities
Monica Edmiston

Jon Keehner / Kate Thompson / Lyle Weston
Joele Frank, Wilkinson Brimmer Katcher

Frank Garcia Joins Pretium’s Growing Real Estate Team as Head of Fund Portfolio Management


Frank Garcia Joins Pretium’s Growing Real Estate Team as Head of Fund Portfolio Management

October 13, 2022

Brings 30 Years of Distinguished Portfolio and Asset Management Experience Across Products and Asset Classes

Underscores Continued Momentum and Commitment to Scaling Leading Real Estate Investment Management Platform

NEW YORK – October 11, 2022 – Pretium, a specialized investment firm with approximately $50 billion in assets under management, today announced that Frank Garcia has joined the firm as Managing Director and Head of Fund Portfolio Management for Pretium’s real estate platform, effective October 17, 2022. In this role, Mr. Garcia will spearhead portfolio management for Pretium’s single-family rental (SFR) fund strategy while engaging and informing the firm’s global client relationships.

Mr. Garcia brings over three decades of experience managing portfolios across multiple U.S. real estate asset classes and investment products, including core, value-added and ground-up development. He most recently spent nearly 10 years as Senior Portfolio Manager of PGIM Real Estate’s flagship U.S. core equity fund, where he led the development and implementation of portfolio-level strategy and improved operations, while driving enhanced financial performance and asset value across market cycles. Mr. Garcia implemented numerous fund-level ESG initiatives, resulting in index-leading scores from GRESB, the benchmark for ESG measurement in the real estate community. At PGIM, he also was involved in firm-level DEI initiatives focused on recruitment and retention of diverse talent. Prior to PGIM Real Estate, Mr. Garcia spent 12 years at Deutsche Bank/RREEF, where he was a portfolio manager on the firm’s core fund and a senior portfolio manager of its U.S. value-added comingled fund betwee 2001 and 2013. Mr. Garcia began his career at CBRE and public REIT manager, Spieker Properties.

“Frank is deeply respected by his clients and brings substantial portfolio management expertise on a national scale to our industry-leading SFR platform,” said Don Mullen, Founder and CEO of Pretium. “As we continue to strategically grow our real estate investment platform, we are also thoughtfully enhancing the ways in which we manage and optimize our portfolios. Having the right team in place is essential for continued success and to create lasting value for our investors and all our stakeholders.”

“We are confident Frank’s extensive experience developing and implementing core and value-added portfolio-level strategies will be an asset to our real estate team and a meaningful differentiator for our clients,” said Josh Pristaw, Co-Head of Real Estate at Pretium. “We look forward to working closely with Frank to further expand our investment management capabilities and scale our real estate platform while delivering compelling returns to our investors.”

“I am thrilled to join and work with the talented, entrepreneurial Pretium team,” said Mr. Garcia. “I look forward to leveraging my experience to further institutionalize portfolio management, generate consistent value for existing clients and play a significant role in augmenting the firm’s visionary leadership in the single-family rental investment landscape.”

About Pretium

Pretium is a specialized investment firm focused on U.S. residential real estate, residential credit, and corporate credit. Pretium was founded in 2012 to capitalize on secular investment and lending opportunities arising as a result of structural changes, disruptions, and inefficiencies within the economy. Pretium has built an integrated analytical and operational ecosystem within the U.S. housing, residential credit, and corporate credit markets, and believes that its insight and experience within these markets create a strategic advantage over other investment managers. Pretium’s platform has approximately $50 billion of assets and employs more than 4,000 people across 30 offices, including London and Dubai. Please visit for additional information.


Jon Keehner / Kate Thompson / Lyle Westo
Joele Frank, Wilkinson Brimmer Katcher


June 2022

Pretium’s State of ESG Report

Read here to learn more.