Single-Family Rentals: What Real Estate Investors Need to Know

Invesco US

Invesco US
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By: Invesco Real Estate

Key takeaways

Integral part of rental housing market

Single-family rental (SFR) totals about 15 million units, similar to the traditional rental apartment market.

Unaffordability creating long-term renters

Home prices have outstripped incomes over the past decade; accumulating down payments can be challenging.

Highly fragmented sector ownership

Tech advances are improving sector inefficiencies, driving operating economies and institutionalization.

With attractive yield premiums compared to the traditional apartment sector and demand-supply dynamics expected to drive income growth, there’s opportunity in the single-family rental (SFR) sector. Several trends have driven positive performance including changing demographics and a limited market supply. Many millennials are becoming long-term renters because homeownership is out of reach, while others like the flexibility of renting versus buying. Upgrades in technology and infrastructure advancements are making SFRs more attractive to larger, more sophisticated developers/owners.

Get the full story about SFR investing with our in-depth analysis.

Our investing lens: Consume, Live, Innovate, and Connect (CLIC)

The Invesco Real Estate (IRE) team takes a unique approach to investing — focusing on evolving secular themes and demand drivers in sectors where we Consume, Live, Innovate, and Connect (CLIC). Get a deep dive providing education, fundamentals, and performance on one of the ten sectors within CLIC each month.

Source: Invesco Real Estate. For illustrative purposes only.

Originally Posted November 11, 2022 – Single-family rentals: What real estate investors need to know


Past performance in not indicative of future results.

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