As we close out 2021, we are looking forward to what 2022 brings to the rental and housing industry.
New lease effective rents continue to rise, with several popular in-migration markets producing double-digit rent growth over the last year, according to our Burns Single-Family Rent Index™ (BSFRI). The BSFRI covers 99 markets and includes homes that are owned by small investors, which are the vast majority of the market.
Top SFR markets with double-digit new lease effective rent growth include:
- Phoenix (+12% YOY)
- Las Vegas (+10% YOY)
- Charlotte (+10% YOY)
- Atlanta (+10% YOY)
The publicly traded single-family rental (SFR) REITs reported even higher rent growth in 3Q21. In aggregate the SFR REITs reported in 3Q21:
- 98% same-home occupancy
- Record-high 18% same-home new lease rent growth
- Virtually no change in the ratio of tenant/applicant incomes, which indicate strong wage growth
This solid performance by the REITS is primarily a function of:
- Concentration in the strongest markets (view map below to the single-family rental REIT portfolio concentration)
- Superior property management services
- Recovering substantial property tax increases that will be passed on to local municipalities
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.