Investments in apartment buildings dedicated exclusively to renting, or multi-family, are a widespread and well-known business.. But in the U.S. in recent months we are seeing a boom in single-family rental housing (SFR) investments. The pandemic has led a growing number of Americans to seek larger homes with yards or gardens on the outskirts of cities. At the same time, low interest rates and the extra income of many families due to the federal government's financial assistance boosted the demand for home purchases. Supply did not grow at the same pace: according to the real estate mortgage company Freddie Mac, the U.S. single-family housing shortage currently stands at 3.8 million units.

This has translated into a sharp increase in housing prices, leading a growing number of families to seek the option of renting. And this is where the business of investing in rental housing began its boom. The construction companies involved in this business, such as Lennar Corp. or DR Horton, have been joined in recent months by investment banks and institutional investors, such as the Canadian Mounted Police pension fund.

A sign of the temperature of the deal was the purchase of Front Yard, one of SFR's main US businesses, by investment firms Pretium and Ares: after reaching an initial agreement in October 2020, they had to amend it at the end of November, increasing the price per share from US$13.5 to US$16.25 in cash. This meant an increase in the share price premium from 36% in the October offer to 63% in the revised November deal.