PulteGroup, Inc. (NYSE: PHM), the nation’s third largest homebuilder, and Invitation Homes (NYSE: INVH), the nation's premier single-family home leasing company, announced today the formation of an innovative strategic relationship. As part of this relationship, PulteGroup expects to design and build approximately 7,500 new homes over the next five years specifically for sale to Invitation Homes for inclusion in their single-family rental (SFR) leasing portfolio.

The companies have already reached agreement on the construction and sale of over 1,000 homes across seven communities over the next several years, with the first sales expected to close in 2022. Initial projects are scheduled for delivery in Florida, Georgia, Southern California, North Carolina and Texas.

“We have been evaluating potential structures for participating in the SFR market that would capitalize on our strengths in community development and new-home construction while delivering high returns,” said Ryan Marshall, PulteGroup president and CEO. “We are excited to be working with an industry leader in Invitation Homes, and believe this relationship will allow us to increase our scale in our existing markets, make investing in larger land parcels more practical, and generate attractive risk adjusted returns.”

“At Invitation Homes, we’re committed to serving the growing share of Americans who are opting not to buy a house by providing high-quality homes with valued features such as close proximity to jobs and access to good schools,” said Dallas Tanner, president and CEO of Invitation Homes. “We’re thrilled that this strategic relationship with PulteGroup further strengthens that commitment as well as enhances our multichannel acquisition approach to growth.”