As we close out 2021, we are looking forward to what 2022 brings to the rental and housing industry.
New lease effective rents continue to rise, with several popular in-migration markets producing double-digit rent growth over the last year, according to our Burns Single-Family Rent Indexâ„¢ (BSFRI). The BSFRI covers 99 markets and includes homes that are owned by small investors, which are the vast majority of the market.
Top SFR markets with double-digit new lease effective rent growth include:
- Phoenix (+12% YOY)
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- Las Vegas (+10% YOY)
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- Charlotte (+10% YOY)
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- Atlanta (+10% YOY)
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The publicly traded single-family rental (SFR) REITs reported even higher rent growth in 3Q21. In aggregate the SFR REITs reported in 3Q21:
- 98% same-home occupancy
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- Record-high 18% same-home new lease rent growth
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- Virtually no change in the ratio of tenant/applicant incomes, which indicate strong wage growth
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This solid performance by the REITS is primarily a function of:
- Concentration in the strongest markets (view map below to the single-family rental REIT portfolio concentration)
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- Superior property management services
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- Recovering substantial property tax increases that will be passed on to local municipalities
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To learn more about the single-family rental and/or build-to-rent market, please fill out this form so we can show you our research membership content or put you in touch with the right consultant