Single-Family Rental

The most recent America’s Rental Housing 2024 report published by Harvard’s Joint Center for Housing Studies (JCHS) takes a detailed look at the state of the rental housing industry.

Even as the single-family rental (SFR) sector has attracted increased investor activity, the total number of SFR households has moderated due to the influence of overarching housing trends.

The SFR sector is well-positioned to limit distress through the challenges of the current moment while advancing its standing within the single-family housing market for the long term.

Following a banner year in 2022, the U.S. multifamily market held steady during 2023. Arbor provided research and insights into our markets throughout the year. Here’s a look at our top Arbor research articles from 2023, in case you missed them.

As the single-family rental (SFR) investment market matures, a clearer picture of its typical renter has begun to come into focus. On December 5 at IMN’s 11th Annual Single Family Rental Forum (West), a group of industry leaders, including Arbor’s Tres Seippel, Director, Construction Management, explored how demographic trends have influenced the rise in popularity of single-family rental homes.

More than halfway through 2023, the single-family rental (SFR) sector continues to demonstrate why it deserves the attention of multifamily investors.

SFR’s significant structural support has enabled it to take noticeable steps forward, while other commercial property types have been merely treading water.

Single-family rentals’ role in the U.S. housing ecosystem is malleable. In different markets, this product type serves different purposes — acting as a magnet for transient lifestyle households in some metros, while providing families with affordable access to quality public school districts in others. As a result, SFR retention rates vary dramatically across the country, depending not only on the cost of homeownership but on the purpose that single-family rentals serve in that market, creating a unique group of top markets.

High interest rates and low housing supply have bolstered demand for single-family rental (SFR) communities as Millennials and Generation Z seek affordability in starter homes. Today, SFRs represent more than half of the U.S. rental market, and economists project that share will grow in the years ahead. With low operating costs, steady supplemental income, and long-term growth potential, investing in single-family homes offers considerable upside in a recessionary environment.

As secondary and tertiary markets continue to gain parity with larger primary cities around the nation, they offer investors a significant potential for return on investment, even as the U.S. and global economic landscapes face notable headwinds.