We’ve compiled a map that shows where fractional residential real estate offerings have been located in the US.
The Map
Each house icon represents the location of an offering. There are multiple color houses, with each color mapping to a distinct “layer” of the map, and a unique investment platform. You can pan and zoom the map. You can also click the icon in the top left to pop out a menu sidebar that allows you to see the names of the “layers,” as well as changing whether they are hidden or not.
Methodology & Limitations
The methodology for creating the map is relatively simple. We went through the current listings of several investment platforms and plotted the locations of their offerings. The address of the properties are typically in the listing, but occasionally have to be found within the offering circular.
Please note that there is a ton of tedious, time-intensive manual work involved in creating this. We will always make our best effort to ensure everything is correct and informative. However, it is possible there may be errors or omissions, especially as offerings are withdrawn and potentially sold in the future.
Lastly, we should talk about our selection of platforms to include.
The first places we started were with companies that we have already covered – Arrived Homes, Here, and Landa. In particular, Arrived Homes and Landa have also received large amounts of venture funding. That positions them well for growth and expansion and is reflected in their relatively large amount of offerings to date.
The determination of what to include beyond that was a bit trickier. We aren’t sure how well the map will scale both in terms of performance, as well as readability, as we add more layers. So we decided to only include a platform’s offerings if they had at least 10 of them. This eliminated a number of smaller platforms that are just getting started.
Beyond that, we are also limited in the information we have access to. One platform we considered including was Roofstock One, but to our knowledge there is no way to get a list of the underlying properties that have been used in their offerings.
Show more +Analysis
Rather than just give you the map and go, we thought we’d provide a bit of analysis and commentary on what we can see in mapping over 650 offerings. Keep in mind though that the map may update in the future, though this analysis may not.
It may take a bit of zooming and panning to really see it, but one thing that becomes immediately clear is that the Atlanta metro area has the highest concentration of homes listed for fractional investment. This is in large part due to Landa’s focus there with over 100 current offerings near Atlanta, mostly southeast of the city center. We also see Arrived having a visible presence there, and Ark7 as well. In our observations, Georgia has also been a focus for Groundfloor’s lending offerings as well, making it potentially one of the busiest markets for investment.
Depending on your perspective this could either be surprising or expected, but there is a fairly clear trend of offerings being decently far away from the downtown or urban cores. It’s not just houses that are on the outskirts of the cities either. In many markets, there are offerings that require passing through another smaller city or two to even get to those outskirts.
Hints Of Strategy
Lastly, looking at the map gives a lot of insight into the business strategy for each of these platforms.
Landa started heavily concentrated in one real estate market that they presumably are very comfortable with. They then have slowly spread out into a few select markets, mostly in geographically similar areas (i.e. The Southeast).
It’s no longer visible with how many offerings they have, but Arrived used a similar strategy in their earliest offerings. Now, especially with their vacation rentals, they are systematically branching out to real estate markets across the entire country. There’s no one that has such a wide reach across the country, though even for Arrived their focus is the Southwest and Southeast. They have very limited presence in the Pacific Coast, Northeast, or Rust Belt states.
Lofty has seemingly mostly focused on going to places where others are not. Their offerings are overwhelmingly focused around the Rust Belt and Memphis areas. They also tend to have older homes available in their listing as well. That is likely a byproduct of the markets they’re in though.
Ark7 has a wide geographic range across a small number of offerings. One thing that differentiates their offerings is their willingness to push into markets that others have shied away from such as The Bay Area, Seattle, and Austin.
Here compares somewhat awkwardly given its exclusive focus on vacation rentals. They have had a small number of successful offerings that have been across the Sun Belt near popular vacation destinations. If you’d like to see a more detailed, direct comparison between Arrived Homes and Here’s vacation rental offerings, take a look at this article.
