Single-Family Rentals (SFRs) have been a long-standing segment of the housing market. For many, they offer access to single-family communities without the financial barriers to purchase. For investors, SFRs offer an opportunity to benefit from the growing lifestyle of renting.
As part of our ongoing analysis of the SFR segment, CONTI has been observing a growing appetite for rental housing. We believe this growth is propelled by the same compelling demographic drivers underpinning multifamily demand. Student debt, non-student debt, wage gaps, personal savings shortfalls, and overpriced markets to name a few. But today we would like to focus the outcome of this demand. We feel there is a crisis in housing affordability and availability coupled with a growing renter-by-choice mentality that has been accentuated by the pandemic. Many renters are re-evaluating their choice to live in high density neighborhoods and instead are opting for more family and home office space that SFRs provide. The future outlook? More people renting for longer and an increasing demand trend for more SFRs as aging millennials pursue their ambitions for a single-family household.
Related article: The Demographics Behind Multifamily’s Stable Demand Growth