Ever since we purchased our first home in Phoenix in 2012, we’ve made it our mission to offer flexibility and choice in the housing market. Today, offering high-quality and affordable homes for lease remains paramount for Invitation Homes, alongside our growing efforts to provide pathways to homeownership for the share of residents that desire to do so.
We recognize that many Americans still aspire to homeownership, and we want to help residents who are on this journey. We’re working to increase the number of ways people can reach homeownership, including through programs like Resident First Look™ and investments in housing solutions like Pathway Homes. Moreover, while residents are leasing with us, we deliver a high-quality product that allows them to enjoy the benefits that come with living in a single-family home without the higher cost . For some residents, these savings will eventually go toward purchasing a home.
Our Resident First Look™ program represents just one of the ways that we help current residents reach homeownership. This program provides residents the opportunity to purchase the home they already know and love before it’s on the market, where offered. We initially launched the program as a pilot in 2016 in Phoenix and Northern California and have since expanded to locations across the country. Resident First Look™ helps individuals and families comfortably transition into homeownership while staying in the home they already love. Approximately one quarter of Invitation Homes residents who move out do so to become home buyers, making the Resident First Look™ program an especially valuable option.
At the beginning of 2022, we announced our role as the lead investor in Pathway Homes, a new company that provides a unique housing solution to meet the growing demand for high-quality, affordable homes. The company works directly with individuals and families throughout the homebuying process, first offering a lease and then the ability to purchase the home at a later date. Invitation Homes provides maintenance and other services to all Pathway homes, allowing us to build on our industry-leading standards and continue to improve the resident experience.
Leasing a single-family home as an interim option while charting the path to homeownership is also an option that we’re proud to support. The share of annual income our residents spend on housing is less than 19 percent, and it has been reported recently that it was more affordable to lease a single-family home than it was to buy in most markets, representing an average savings of over $800 per month. These savings can prove valuable no matter where an individual is at in life. We’re proud to offer an affordable housing option for those who prefer the ease that comes with leasing and those that aspire to own a home one day.
We’re doing our part to support individuals’ paths to homeownership, and we invest in a diverse portfolio of opportunities to help make the dream of homeownership a reality for those who desire that option. And no matter the reason for or length of a resident’s stay with us, we make sure they have a comfortable, safe, and happy place to call home.