More than $50 billion in capital is flooding the red-hot single-family rental market, according to a new analysis from John Burns Real Estate Consulting.
The sector is soaring thanks in large part to pandemic-induced disruptions in how we live and work, says John Burns' Danielle Nguyen. By way of comparison, just $3 billion was targeted toward SFRs in 2020. That number ballooned to $45 billion in 2021, and $5 billion has already been committed to the sector so far this year alone.
The estimated $50 billion John Burns is tracking translates into 125,000 homes at today's median resale value of about $400,000, Nguyen says. But "since some of this is only the equity investment and excludes the debt (and we know of far more than this that is not public info), we believe the number of homes that could be built and/or purchased far exceeds this," she says.
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