Demand for single-family rental homes remains strong according to our Burns Single-Family Rent Index™ (BSFRI).
- US single-family effective rents grew 6% YOY in September 2021, showcasing continued growth for this asset class.
- Note: The US Burns Single-Family Rent Index™ (BSFRI) is the US roll-up based on a weighted average of the 63 single-family rental markets we track across the country.
Core 20 top SFR markets with the strongest new lease effective rent growth (BSFRI) include:
- Phoenix (+14% YOY)
- Atlanta (+12% YOY)
- Las Vegas (+11% YOY)
- Riverside-San Bernardino (+11% YOY)
- Charlotte (+11% YOY)
- Jacksonville (+11% YOY).
Non-core 20 top SFR markets with the strongest new lease effective rent growth (BSFRI) include:
- Detroit (+11% YOY)
- Reno (+11% YOY)
- Tucson (+9% YOY)
- Sacramento (+9% YOY)
We cover 63 markets in our single-family rental research and are in the process of adding more than 30 secondary and tertiary markets due to client demand.
We also cover and analyze the single-family rental REITs (SFR REITs), who have all reported even faster rent growth in 3Q21. We attribute this primarily to:
- The SFR REITs’ footprints are concentrated in the strongest markets.
- The SFR REITs provide superior property management and services than the typical mom and pop.
- Recent home price appreciation will generate property tax increases in most states. These increases will flow into rents until occupancy wanes.
Rising home prices paint a rosy backdrop for the single-family rental sector as prices are likely pricing out some would-be home buyers. Below table highlights the YOY % growth in single-family new lease effective rents versus our home value index.
- Austin, Tampa, Phoenix, and Raleigh-Durham all posted 32%+ YOY home price appreciation, which all happen to have a large single-family rental and build-to-rent presence as well.
We are now tracking 550+ active leasing build-to-rent communities in our SFR research and database. Reach out if you would like to learn more.
To learn more about the single-family rental and/or build-to-rent market, fill out this form or contact Danielle Nguyen, and we can show you our research membership content or put you in touch with the right consultant.