Analysis of changes in the investment strategies of real estate funds for multifamily/single-family houses after the pandemic

A global economic recession followed the pandemic outbreak, as did real estate’s value. However, the real estate recession lasted only two months, with a V-shaped rebound following it. The goal of this thesis is to analyze the investment of multifamily/single-family houses within the United States from an institutional investor’s perspective based on an analysis of the benefits and constraints of the current market and economic environment, as well as studying the changes in investment strategies since the pandemic began. The pandemic is a double-edged sword. It is important to note that the recession presents both negative impacts and opportunities. It created social and political restrictions, economic pressures such as lack of skilled labor, high unemployment rate, and development issues like high construction costs. However, at the same time, it also provided opportunities such as low capital costs, a desire for better living conditions, and the volatility of other capital markets. This thesis examines the above impacts and possibilities based on solid data analysis. In this thesis, we analyze the timing of investing in multi-families/single-families, capital structure, and strategy changes from the institutional investor's perspective. We also take Blackstone Real Estate Income Trust (BREIT) as an example and discuss institutional investors' investment strategies for an in-depth evaluation. According to the comparison of investment strategies of real estate funds before, during, and after the pandemic and the comparison of investment strategies of different funds, this thesis sorts out the reasons for the impact and opportunities of the pandemic on real estate funds based on solid data, and the outlook of the investment trend, investment strategy and fund structure of multi-family and single-family houses after the pandemic. The analysis of this study also has practical significance in the process of normalizing the current epidemic situation.

Name thesis:degree_name

Master

Department dc:contributor.department

Sloan School of Management

Grantor dc:publisher

Massachusetts Institute of Technology

Year dc:date.issued

2022

Author dc:creator

• Xu, Miao

Advisor dc:contributor.advisor

• Torous, Walter

Statement dc:rights

• In Copyright - Educational Use Permitted
• Copyright retained by author(s)

Licence dc:rights.uri

• https://rightsstatements.org/page/InC-EDU/1.0/

Handle dc:identifier.uri

https://hdl.handle.net/1721.1/146681

OAI identifier oai:identifier

oai:dspace.mit.edu:1721.1/146681