After years of contraction, the SFR market grew 1.7% in 2025 to 14.6 million households.

These assets deliver 6.6% returns and 4.2% volatility, well ahead of offices and retail on stability metrics.

Strong Q4 absorption in select metros demonstrates resilience amid seasonal net move-outs.

Industry sentiment has signaled a clear shift—more capital and more deals for a stronger 2026.

Stronger utilization, slowing deliveries and rising build-to-suit activity are setting the stage for rent growth.

Annual gains highlight flight to quality, with top markets and larger properties outperforming secondary ones.

Operators are consolidating, optimizing site performance and targeting submarkets with strong demand.

Regional gaps are wide, with West Palm Beach seeing the largest markdowns and Seattle the smallest.