Single-Family Rental Power Players: Who Are The Biggest Names In The Roaring SFR Market?
While U.S. housing prices are finally starting to drop, rising interest rates, an uncertain economy and continued supply issues are keeping millions of Americans from embracing homeownership. As they wait for the white-hot housing market to cool down, many of these prospective buyers are choosing to rent single-family homes, causing the single-family rental market to soar.
In 2021, The New York Times reported that build-to-rent homes — single-family homes constructed expressly for the purpose of renting — made up 6% of all new houses under construction in the U.S. and predicted that number would double in the next 10 years.
Today, institutional investors are taking notice. According to recent research conducted by MetLife Investment Management, institutions own an estimated 700,000 single-family rentals in 2022, roughly 5% of the nation’s 14 million SFRs. By 2030, MIM predicts that institutions will increase SFR holdings to 7.6 million homes, which represents more than 40% of all SFRs.
Clearly, the demand for SFRs is on the rise, but many commercial real estate professionals may still be in the dark when it comes to this growing asset class. To shed some light on the burgeoning SFR market, Bisnow’s sponsored content department, Studio B, teamed up with Lending One to identify the power players who are bringing it to life.
The team analyzed securitization data, public records and the number of assets under management to determine which companies are currently dominating the world of SFRs. Read on to learn more.