The single-family rental (SFR) sector shows renewed operational strength, supported by higher occupancy rates and improving tenant retention even as home prices have softened in mid-2025.

Occupancy and Retention Rebound and SFR Sector Matures
Arbor’s Single-Family Rental Investment Trends Report Q3 2025 documents the increasing strength and resiliency of the sector as it transitions to stable growth after a long period of rapid expansion. Rent growth remained positive last quarter, pushing up property-level yields as robust build-to-rent (BTR) construction activity continued to boost supply to a marketplace in need of quality rental housing.
Key Findings:
- Cap rates moved higher as rents grew faster than home prices.
- Operational metrics strengthened as tenant retention and occupancy rates improved.
- SFR delinquency rates continued to move lower and have outperformed trends within the single-family housing market.