Single-Family Rental

Rental Growth Where You Least Expect It

May 29, 2015

Take a drive through the urban portion of any major city and you will likely see cranes and construction crews dotting the landscape, building what appears to be an endless supply of apartment units. Your eyes are not deceiving you. Construction in 24 of the top 27 apartment markets in the country has eclipsed 24-year historical averages.

Given the declining national homeownership rate and numerous headwinds preventing entry-level buyers from owning a home, one could quickly assume that apartments are now the primary as well as preferred rental choice. This assumption would be incorrect, however, as single-family rental homes are growing faster than apartments. Consider the following:

  • 3% of all housing units are single-family rental homes (roughly 1 out of every 9 homes).
 
  • The number of single-family rental homes has increased 35% since 2006, to 15.1 million from 11.2 million in 2006.
 
  • Since 2006, 3.9 million single-family homes have become rental properties, compared to 2.9 million newly created apartment units.
 

While we expect the rate of single-family rental growth to slow as foreclosures slow, we believe the professional operators have a huge opportunity to build an investment-quality income stream out of what used to primarily be a mom and pop business.

Building Market Intelligence™

Every week, we deliver analysis to over 40,000 subscribers with our Building Market Intelligence™ newsletter. Subscribe to our weekly BMI newsletters to stay current on pressing topics in the housing industry.

About The Author

Contact Us

If you have any questions about our services or if you would like to speak to one of our experts about we can help your business, please contact Client Relations at clientservices@jbrec.com.

Products and Services Mentioned

Research Membership

Our research services enable our clients to gauge housing market conditions and better align their business and strategic investments in the housing industry. We provide a thoughtful and unique holistic approach of both quantitative and qualitative analysis to help clients make informed housing investment decisions.

Single-Family Rental Package

A comprehensive overview of the single-family rental industry’s major markets including forecasts, SFR market rankings, macro drivers, housing supply, demographic trends, and a look at Build-to-Rent.

Real Estate Consulting

Our experienced team of consultants helps clients make sound housing investment decisions. We thrive on their success and work with many clients over multiple years and numerous projects. ​

Latest Insights

What’s happening with hiring? Listen to these 4 recruiting firms.
Earth, Wind, and Fire: NileBuilt Homes Defy the Elements
Design Disruption: Architects’ Floor Plan Forecasts