Barriers to Institutional Investment in Rental Housing: A Systematic Review of Market Risks

Housing practitioners and policy experts are advocating for an expansion in rental housing supply contemporary cities around the world. The objective is to convince institutional investors include investment their portfolio contribute boosting supply. Unfortunately, sector characterized by numerous uncertainties challenges, making it unattractive investors. With growing attention various market contexts, understanding of risks (also known as barriers), useful inform future research policymaking. Using a systematic literature review methodology, this paper synthesizes extant on inhibiting housing. Findings reveal following barriers: low profitability, non-progressive rent control policies, unclear target group rented projects, poor landlord-tenant relations, inadequate property management unreliable information. Among all barriers identified, profitability had great influence decision. Firstly, perceive less profitable terms project performance. Secondly, lack supporting structures contributes derailing yields. also finds that projects often vague especially under government assistance. sectors many countries confronted with problems, some which greatly inhibit from investing asset. This concludes that, although idea expanding seems laudable, ignoring these problems may be detrimental markets long run. Rental volatile, thus not ready receive fully into sector. An expanded could advanced if makers take appropriate steps resolve identified challenges. Adequate structural preparations must made large scale