The burgeoning single-family rental sector is expected to hold up well this year despite mounting economic headwinds — but increasing operating costs do pose a concern for owners and developers in the space.

A Green Street report authored by John Pawlowski, head of the Residential team, finds that factors including strong demographics, "an affordable price point" and otherwise limited single family construction bodes well for the sector over the next five years, especially when compared to other asset classes within commercial real estate.

To wit: the 35 to 44-year-old population is expected to grow at a clip double that of the overall US average, and the Sun Belt — already home to many SFR communities with many more under construction or in the planning phase — is expected to see above-average growth from that demographic. Single-family rental developments are most prevalent in the South Atlantic region of the US, led by Florida, Texas and North Carolina, with nearly 45% of all properties securitized in CMBS in the Southeast region.