Single-Family RentalNational Housing Market Outlook

Over $30 Billion in Capital Is Chasing 35-Year High in Single-Family Rent Growth

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Danielle Nguyen

October 15, 2021
JBREC 30 Billion SFR_house with keys

We identified 43 announcements totaling more than $30 billion in capital (see infographic below) that are targeting US rental housing.

Since some of this is only the equity investment and excludes the debt, and we know of far more than this that is not public info, the real number is much higher.Capital is flooding in for a host of great reasons:

  • Worldwide bond yields are at historic lows, and investors need yield.
 
  • Inflation is on the rise, and most investors view rental homes as an inflation hedge.
 
  • Record high rent growth (see chart below) is supported by high occupancy rates.
 
  • Renters have demonstrated that they are willing to pay a premium to rent in a new home neighborhood managed by a professional landlord. While the news headlines and NIMBYs are busy bashing institutional owners, many renters are clearly enjoying a better rental experience living with renter (instead of homeowner) neighbors and having no fear that their landlord might decide to sell the home sometime soon.
 

ingle-family rents have grown 6% in the last year per our Burns Single-Family Rent Index™ (BSFRI). This is the highest growth in the 35 years of data we have compiled. The BSFRI is a weighted average of rental home rents in the 63 major single-family rental markets we track

To learn more about this growing opportunity that has recently become more expensive and might even become oversupplied in a few areas, please fill out this form, and we can show you our research membership content or put you in touch with the right consultant.

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About The Author

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Danielle Nguyen
Vice President of Research
Danielle manages, implements, and analyzes the housing market with a specific focus on for-sale and for-rent research. She is a research content creator who produces high-quality, insightful, and forward-looking housing research and a trusted resource (connector) for clients and those interested in JBREC’s research.

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