Exploring US Single-Family Rental Demographics

Exploring US Single-Family Rental Demographics

Why favorable demographics are providing single-family rental tailwinds

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


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This article originally appeared in PREA Quarterly’s Summer 2024 edition

Disclaimer


The content herein and in the report is provided for informational purposes only. Nothing above or in the report constitutes investment, legal, or tax advice or recommendations. Such content should not be relied upon as a basis for making an investment decision and is not an offer of advisory services or an offer to invest in any product or asset class. It should not be assumed that any investment in an asset class described herein will be profitable. Any projections, estimates, forecasts, targets, prospects and/or opinions expressed in these materials are subject to change without notice. Opinions or beliefs expressed in these materials may differ or be contrary to opinions expressed by others. Certain information above and in the report has been obtained from third-party sources. Hines has not independently verified such information.