According to a recent DSnews report, the single-family rental market has shifted over the past decade. The market has gone from individual units being rented by small landlords to investors renting a significant amount of homes. The report states that large companies are building units specifically to rent and be managed similar to an apartment complex. Single-family rentals are peaking the interest of large institutions, builders, and apartment firms. Single-family rentals have become increasingly popular since the Great Recession. However, since the COVID-19 has caused many people to work remotely, Americans are wanting larger living spaces. The report notes that Americans want more bedrooms and large backyards, but cannot afford a down payment.
WHAT ELSE DOES THE STUDY REVEAL?
Due to the low inventory of homes, builders and apartment companies are focusing on building rental specific homes. Experts believe that large apartment companies could go from owning 1,500 homes to 25,000 homes. While small landlords still own the majority of single-family rentals, the global pandemic has brought other corporations into the market. Jeffrey Langbaum, an analyst at Bloomberg Intelligence, stated that, “Most real estate investment trusts that specialize in apartments still believe that they’re in a different business than single-family landlords. Others, however, see the logic in companies offering tenants everything from downtown apartments to suburban homes”. Gary Beasley, CEO at Roofstock, told Bloomberg that this innovation will allow landlords to service customers throughout their life cycle—starting with an urban apartment in their 20s, moving them to a suburban rental home in their 30s, and perhaps even selling them a home in the 40s.
Click here to read the full DSnews report and learn more!
Click here to read the full Bloomberg report.
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