Goldman Sachs Downgrades American Homes 4 Rent Amid Market Oversupply Concerns

Goldman Sachs has revised its position on single-family rental operator American Homes 4 Rent (AMH), shifting its rating from “Buy” to “Neutral.” Concurrently, the investment bank has reduced its price target for the company’s shares from $43 to $37. This decision stems from mounting apprehensions regarding a surplus of rental properties entering the market and the subsequent pressure this is placing on rental rate growth.

According to analysis by Goldman Sachs strategist Julien Blouin, the current environment is becoming increasingly challenging for residential real estate equities. A significant influx of single-family homes is appearing on the rental market within American Homes 4 Rent’s key operational areas. The report details a trend where home sellers are becoming “involuntary landlords,” and homebuilders are opting to... Read more...