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Single-Family Rent Growth Hits 35-Year High

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Build to Rent

Single-Family Rent Growth Hits 35-Year High

Public investments total $30 billion in capital and counting.


October 18, 2021
Rental paperwork with keys and pen
Image: stock.adobe.com

High rent growth and inflation are just a few of the driving factors for a major rise in housing capital, according to the Burns Single-Family Rent Index (BSFRI). 

Investor and capital transactions from 2020 are a result of a massive increase in single-family rent growth with over $30 billion in capital targeting US rental housing. 

Capital is flooding in for a host of great reasons:

  • Worldwide bond yields are at historic lows, and investors need yield.
  • Inflation is on the rise, and most investors view rental homes as an inflation hedge.
  • Record high rent growth (see chart below) is supported by high occupancy rates.
  • Renters have demonstrated that they are willing to pay a premium to rent in a new home neighborhood managed by a professional landlord. While the news headlines and NIMBYs are busy bashing institutional owners, many renters are clearly enjoying a better rental experience living with renter (instead of homeowner) neighbors and having no fear that their landlord might decide to sell the home sometime soon.

Single-family rents have grown 6% in the last year per our Burns Single-Family Rent Index™ (BSFRI). This is the highest growth in the 35 years of data we have compiled. The BSFRI is a weighted average of rental home rents in the 63 major single-family rental markets we track.

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