Invitation Homes has made a significant move in the homebuilding mergers and acquisitions landscape with its $89 million acquisition of ResiBuilt. This acquisition is not just a small deal, but one that can potentially change the dynamics of competitive power between two adjacent ecosystems.
In the past, single-family rental REITs have typically been buyers of homes, while single-family builders have been sellers. However, with this acquisition, Invitation Homes is looking to internalize vertical construction capability by bringing in a 70-person build-for-rent developer and vertical-construction operator based in Atlanta.
According to Dallas Tanner, President and CEO of Invitation Homes, the acquisition of ResiBuilt is a strategic move to enhance development capabilities and address housing affordability challenges. ResiBuilt, with its track record of delivering quality homes for the single-family rental market, has already built over 4,200 homes since 2018.
While the deal does not include land, Invitation Homes has secured options on approximately 1,500 lots, providing future purchase opportunities without adding land to the REIT’s balance sheet. The transaction is expected to be modestly accretive to 2026 AFFO per share.
Why this pairing is “first-of-its-kind”
This acquisition is not a traditional homebuilder buying land and inventory, but rather a REIT acquiring the ability to produce supply in a capital-light manner. By bringing internal development and delivery capabilities in-house, Invitation Homes is looking to control costs, schedules, product standardization, and market selection.
Balance-of-power shift: from “buyer of homes” to “producer of supply”
With this move, Invitation Homes is shifting from being a buyer of homes to a producer of supply. This strategic shift gives the REIT more control over its supply chain and allows it to leverage its internal production capabilities without taking on traditional builder risks.
AMH is the obvious “comparator”—and the competitive tell
By acquiring ResiBuilt, Invitation Homes is following in the footsteps of American Homes 4 Rent (AMH), which has successfully integrated internal development capabilities into its operating model. This move signals a competitive shift in the industry, with Invitation Homes now able to create its own product and potentially compete with traditional builders.
The policy cross-current: banning institutional buying vs. building institutional supply
Amid discussions of banning large institutional investors from buying single-family homes, Invitation Homes’ acquisition of ResiBuilt highlights the importance of purpose-built supply in addressing housing challenges. By focusing on new construction and capital-light partnerships, Invitation Homes is positioning itself as a creator of incremental supply rather than a competitor in the resale market.
Why we’re likely to see more of these pairings
If Invitation Homes’ strategy proves successful, we can expect to see more similar pairings in the future. Single-family rental REITs, multifamily REITs, and large private capital allocators may all explore opportunities to create internal development capacity for cost control and supply certainty. This new blueprint for homebuilding M&A could potentially reshape the industry landscape.