Single-Family Rental Investment Snapshot — Q3 2021
The single-family rental sector (SFR) is firing on all cylinders, with key indicators reflecting a healthy inflow if investment capital and tenant demand. The sector was already professionalizing prior to the pandemic and since then more than $30 billion of institutional capital has been allocated for SFR.
During the third quarter, occupancy levels remained at generational highs, with SFR properties operating at near or full capacity. Rent growth also achieved all-time highs in each of the last seven months. Cap rates continued to compress to record lows, further reflecting staunch investor demand.
As the economy continues its recovery from the COVID-19 recession, the SFR sector will continue to attract investment, as they provide a housing option for would-be first-time homebuyers that have been priced out of the for-sale market or those that are attracted to the renting lifestyle.