THE SFR DEMAND
New construction levels in the U.S are far below historical levels and there are not enough new housing units to support the growth in the population and households.
Millennials want to rent homes.
Builders only see profit in big homes.
Single family homes are the most liquid form of real estate investment with the deepest sales channel.
Excellent opportunity to acquire assets at attractive prices and, by renting them out, achieve a good yield on investment.
SFR market is here to stay and inventory is low.
In many markets, a yield of 7% or greater can be achieved.
Single family rentals provide a strong hedge against inflation and have low correlations with other widely-held investment assets such as stock and bonds.
Single family homes have over the last 125 years generated better returns than the stock market with significantly lower volatility.
Leverage technology to identify opportunities
Renovate to reduce maintenance expenses
Experienced professionals in each market to leverage local experience
Focus on tenant experience to increase longevity and improve long-term profitability
Focus on assets that deliver positive cashflow after debt service
Valued at $4.1 trillion, the single-family home rental market represents 30-35 % of all rented housing units in the US. When adding the roughly 8 million 2-4-unit properties, the total number of SFRs is approximately 23 million, or 53% of the total rental market.
In absolute size and market value, single family rentals (SFR) are comparable to other commercial real estate classes.
Beginning in the fourth quarter of 2019, U.S. home ownership rates fell to 65.1%, as compared to 67.5% at the end of 2000. Market experts believe this fundamental home ownership change over the last two decades has resulted in a substantial increase in single family home rental demand.
The single family home rental market is not only primed for advantageous growth, but will remain a viable market segment for the foreseeable future based on these market conditions.
OF REAL ESTATE