Single-Family Rental Investment Snapshot — Q1 2021
All else equal, 2020 proved to be a banner year for the single-family rental (SFR) sector. Before a real estate product type withstands its first recession, it is impossible to know for sure how it will perform during a downturn. The theory before the pandemic was that SFR was as recession resilient as they come and the past year confirmed just that. As the optionality of the single-family residential market grows to match that of the multifamily/condo space, professional SFR operators have their foot on the gas for what looks like yet another record-setting year Here’s a quick look at the q1 2021 single-family rental finance and investment benchmarks.
Rent growth accelerated to a new historical high of 8.3% in the first quarter of 2021. Occupancy rates across all SFRs averaged 94.5%, after reaching a historical high of 95.3% during the pandemic.
Cap rates began 2021 by ticking up to 6.0% — settling just above their record-low of 5.9% achieved the prior quarter.
For more single-family rental market insights, read our Q1 2021 Single-Family Rental Investment Trends Report.