Single-family rental (SFR) investing is surging as this asset class outperforms. With homeownership less attainable and lifestyle renting more popular, the sector’s tailwinds bode well for long-term growth. If you are new to this space, our guide has answers to commonly asked questions.

SFR Construction Soars Amid Favorable Trends in Cap Rates and Debt Yields
With home prices nearing all-time highs, single-family rental (SFR) housing is uniquely positioned to capture an even larger slice of the for-sale market. As structured capital markets rebound, SFR will benefit from a set of tailwinds that include robust levels of new construction and favorable trends in cap rates and debt yields. Arbor’s Single-Family Rental Investment Trends Report, developed in partnership with Chandan Economics, shows why this sector’s prospects are so strong.
Key Findings:
- SFR/BTR construction starts surged, reaching a new high of 9.0% of all single-family development activity.
- SFR CMBS activity in 2024 has already more than doubled 2023’s total.
- Rent and home valuation growth rates continued to moderate.