Institutional Single Family Rental Activity

2017/2018 U.S. market trends support long-term growth & opportunity

Leasing Lifestyle: In 2017, the single-family rental (“SFR”) asset class made  further progress towards being widely-recognized as an institutional investment – below are some of the key takeaways and market trends addressed in our commentary article:

  • Increasing capital flows – in 2017, SFR purchases by institutional investors increased over the previous year for the first time since 2013 – increased investor activity is pushing capital into the SFR space and validating its longevity as an alternative asset class for investors
  • Consolidation across large institutional owners – these developments have led many companies to consolidate their SFR portfolios. Mergers and portfolio acquisitions open up potential cost synergies for acquirers, and grant additional  scale to the remaining operators in the SFR sector
  • Government sponsored enterprises (“ GSEs”) launch pi lot deals backing SFR – in early

2018, Freddie Mac joined Fannie Mae in guaranteeing loans on institutionally-owned.

SFRs. The introduction of the two major government-backed financiers indicates broader acceptance and the availability of more financing options in the SFR market.

Introduction: Single-Family Rental Activity

Our November 2016  whitepaper, “U.S. Single Family Rental – An Emerging Institutional Asset Class,”  examined single- family rentals  as an institution-owned, long-term commercial real-estate (“CRE”)  asset. It broadly discussed the U.S. housing market and single-family rentals, and examined drivers behind the growth of single-family rentals, and in particular, institutional SFR.

We  followed  that  up  with  an update on institutional activity in August 2017.

In the April 2018 commentary,  we explore more recent developments in the space focusing on 2017 through early 2018.

Based on tagging known institutional players in public county record transaction data, we estimate that they own and manage nearly 220,000  single-family rental properties; in our opinion, the actual number is likely closer to 300,000.

Full report can be read here…