Occupancy of single-family rental space is at its highest point in more than two decades, with current occupiers predicted to remain renters for longer against a backdrop of rising mortgage rates.
That demand has amplified investor interest in the sector, according to new research from JLL. SFR as an asset class is currently dominated by mom-and-pop investors, with institutional money accounting for just three to four percent of all supply in the United States.
According to John Burns Real Estate Consulting, owning an entry-level home is now $419 more expensive on a monthly basis than renting, the widest gap since 2007. But SFR rents are also ticking up as demand increases, with rents pushing up 5.5% year over year in the fourth quarter of 2021. John Burns predicts rent growth of 5% in 2022 and 4% in 2023.
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
*May exclude premium content
Already have an account?
Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
