Despite being an historically important part of the US housing market, single-family rentals (SFRs) with institutional ownership are a relatively new phenomenon, coming on the scene in a meaningful way only in the aftermath of the global financial crisis.
Initially, large institutional investors amassed portfolios by taking advantage of the surplus of foreclosed properties available at auction.
Despite recent consternation that institutions are crowding out would-be single-family homeowners, the share of detached SFRs in the US has declined dramatically since the turn of the 20th century, as shown in Exhibit 1.
EXHIBIT 1 | The Share of Detached SFRs in the US since 1900
Sources: Hines Research; 1900-1930, 2005-2022; IPUMS USA Census and ACS; 1930-2000 US Decennial Census
Exploring US Single-Family Rental Demographics
Joshua Scoville
Head of Global Research