The single-family rental market will be more cyclical going forward, primarily because the rise of newly built rental subdivisions will create a supply of vacant homes, John Burns Real Estate Consulting's Danielle Nguyen predicted recently.
She contended high supply, which has always contributed to apartment cyclicality, will contribute to single-family rental cyclicality as well.
Strong fundamentals are driving investment, and hence new supply, in this sector of the market. Single-family year-over-year rent growth reached a 16.5-year high in July 2021, according to the CoreLogic Single-Family Rent Index and in many markets exceeding double digits including Phoenix (+13%), Riverside-San Bernardino (+12%), and Atlanta (+11%).
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