New Kids on the Block
- Nov 03, 2014
Institutions Flock to Single-Family Rentals—But Their Days May Be Numbered
By Mike Ratliff, Senior Associate Editor
The number of single-family rentals is growing, and institutional investors are reaping the benefits.
Single-family rentals represent the fastest-growing segment of the U.S. residential market today. Since 2007, the number of detached single-family homes operated as rentals has increased 27.8 percent, or from roughly 9.6 million units to 12.2 million units. This is according to recently released data from the Census Bureau’s 2013 American Community Survey, which also found that SFRs now represent approximately 28.8 percent of the 42.4 million units of renter-occupied housing in the U.S.
Several demographic and economic factors are responsible for this shift. Declining homeownership is playing a role. As of the second quarter of 2014, only 64.7 percent of Americans owned a home. This figure is on a continued downtrend, and currently sits at its lowest level since the first quarter of 1995.