Not only were single-family rentals (SFR) born from the ashes of the Great Recession, this sector has some legs.
While attention on SFR has increased over the last couple of years, many are surprised to learn just how large the sector already is. Accounting for 25 million renter households, SFR makes up 66% of the entire U.S. rental stock. Further, SFR has been this cycle’s fastest-growing rental asset class, expanding by roughly 35% in the past decade alone, per a Forbes column by Ivan Kaufman, chairman and CEO of Arbor Realty Trust.
Lower-priced assets in the recovery’s early days attracted large swaths of investors into single-family home purchases, and evolving demographic trends have kept them around. The sector’s strong fundamentals and long-term outlook, as well as improvements in property operations, have given rise to institutional interest in the SFR sector. As a national direct lender, my firm has stepped into the SFR space as well in order to help investors grow and expand their portfolio investments.