Occupancy of single-family rental space is at its highest point in more than two decades, with current occupiers predicted to remain renters for longer against a backdrop of rising mortgage rates.
That demand has amplified investor interest in the sector, according to new research from JLL. SFR as an asset class is currently dominated by mom-and-pop investors, with institutional money accounting for just three to four percent of all supply in the United States.
According to John Burns Real Estate Consulting, owning an entry-level home is now $419 more expensive on a monthly basis than renting, the widest gap since 2007. But SFR rents are also ticking up as demand increases, with rents pushing up 5.5% year over year in the fourth quarter of 2021. John Burns predicts rent growth of 5% in 2022 and 4% in 2023.
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