Real estate investment management firm Pretium Partners has raised nearly $1 billion for a new fund dedicated to acquiring built-to-rent (BTR) homes, Bloomberg reported on Tuesday.

The company led by former Goldman Sachs partner Don Mullen also said in a statement that it has now invested a total of more than $2.5 billion in purpose-built rental homes. The investment has resulted in 7,500 new built-to-rent homes acquired across 37 cities and 11 states.

“Decades of under-building and under-investment have led to today’s shortage of viable housing in the United States. That deficit can only be fixed with new capital invested to create new housing supply,” Josh Pristaw, Pretium’s head of real estate, said in a statement. “We are proud to be in a position to create necessary new housing throughout the United States and eager to continue investing in new homes to expand housing choice and supply over the next decade.”

Elevated mortgage rates and limited housing inventory fuel the ongoing demand for single-family rental units, keeping construction starts afloat in the BTR market.

Since borrowing costs surged in 2022, investors have developed other ways to buy homes, including directly from builders. In January, Blackstone announced plans to buy Tricon Residential, which owns more than 37,000 U.S. rental homes.

In June 2023, Pretium also acquired thousands of homes in a $1.5 billion deal with D.R. Horton, one of the nation’s largest builders.

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