Denver-based Flock Homes has officially entered the Phoenix real estate market, acquiring five single-family rental homes in Mesa for $2.2 million — and they’re just getting started.
🏘️ Key Highlights:
- Flock’s Goal: Build a 1,000+ home portfolio in Phoenix.
- Current Holdings: 10 occupied rental homes in metro Phoenix.
- Target Sellers: “Accidental” or retiring landlords who want to exit active management.
💡 What Makes Flock Different:
- UpREIT 721 Exchange: Offers investors a way to defer capital gains taxes by converting their property into shares of a real estate fund — similar to a 1031 exchange, but with more flexibility and fewer headaches.
- Passive Investing Appeal: Owners receive distributions/dividends without the hassles of property management.
📈 Market Context:
- Rental Trends: U.S. single-family rental rates averaged $2,169 in March 2025; year-over-year growth has flattened, but occupancy remains strong at 94.7%.
- Phoenix Outlook: Despite national slowdowns, Phoenix still sees home price appreciation — a positive signal for long-term investors.
🛠️ Why This Matters to Arizona Investors:
- With institutional buyers cooling off, Flock’s model could attract seasoned landlords looking to exit — especially as rising costs and regulations weigh on mom-and-pop owners.
- For those looking to scale down while staying invested, the 721 exchange provides a rare combo of tax deferral, asset appreciation, and passive income.