The single-family rental market was already heating up before the pandemic. Now, it has quickly transformed into one of the top investment asset classes in commercial real estate. With strong demand and institutional capital entering the arena, the single-family rental market is on track to be as prevalent as multifamily.

"The single-family rental concept is not new, but it has been blossoming over the last several years and most notable since the onset of COVID-19. That is when we really saw things picking up," Dori Nolan, SVP of national client services at Berkadia, tells GlobeSt.com. "With affordability continuing to rise and household incomes not rising in lockstep with the cost of a home, this is becoming a more permanent, natural place in solving the housing crisis."

Institutional capital is investing in the build-to-rent segment of the single-family rental market, and it's this segment where Nolan is predicting an asset class comparable to the apartment sector. "I think that single-family rentals will become as prevalent as multifamily housing in the next 10 to 20 years. It really reminds me of when the multifamily sector took off in the 90s," she says. "That is what we are seeing today."