By DS News
Single-family rentals have long been a major sub-product of the housing market, representing about one-third of some 46 million rental homes in America. Almost all of such properties, an estimated 98% prior to the 2008 financial crisis, were owned by small-scale mom-and-pop-type landlords. In the ensuing years, institutions began buying in, yet remained but a sliver of the market. Now, the robustness of the housing market in the face of a novel economic crisis has made the single-family rental market, and thus the emerging build-to-rent sector, attractive to larger, institutional investors, as DS News has reported of late.
Conditions set the stage for new research and a report by YardiMatrix’s Director of Research Paul Fiorilla and Senior Analyst Casey Cobb, who examine a market—”once an afterthought for investors”—that has grown during the pandemic as families seek “more space, fewer shared walls, and personal HVAC systems, all features offered in single family rentals,” as the researchers put it. They add that investors have allocated $10 billion to the sector in the last few years.
Experts don’t expect interest to wane anytime soon.