An Insider’s Look Into How Secondary Marketing Evaluates LOs

In this webinar we’ll explore the long-term financial impacts of renegotiations, extensions and fallouts, plus basic guidelines to be viewed as a professional by your secondary marketing department

HousingWire Annual Virtual Summit

Sessions from HousingWire Annual 2021 are going to be virtually streamed on October 25. Register now for FREE to tune into what housing industry leaders had to say this year!

How servicers can access timely, accurate data insights

Learn how to navigate the challenges in today’s market – for example, the need for ongoing, on-demand access to near-real-time data and the ability to access those data insights in a timely and accurate manner.

Steve Murray on new brokerage models, CFPB crackdowns

Today’s HousingWire Daily features a discussion on the emergence of a new brokerage model and the validity behind the concerns against institutional investors.

InvestmentsMortgageReal Estate

Here’s why you should start investing in single-family rentals

The pros, cons, opportunities and risks

The single-family rental market comprises 13% of all occupied housing and 37% of the total rental market and is only poised for more growth from here, a new white paper from the National Rental Home Council stated.

For potential investors on the fence, NRHC outlined the pros and cons of single-family rentals versus apartments for investors and residents, along with the risks and opportunities associated with it.

Institutional investor portfolios, as it stands, represent just 1% of the total single-family rental market, with “mom and pop” owners traditionally dominating the market.

Roughly four years ago, Warren Buffett suggested the opportunity to invest in single-family rentals and said, "If I had a way of buying a couple hundred thousand single-family homes and if I had a way of managing them…, I would load up on them.”

Since then, the NRHC cited that the number of homes owned by NRHC members jumped from just under 100,000 SFRs in early 2012 to more than 160,000 SFRs in early 2016.

In light of this, the National Rental Home Council and Green Street Advisors’ Advisory and Consulting Group published new data on the single-family rental industry that details the investment thesis behind the institutional single-family rental business.

The report’s findings are based on data provided by NRHC members Colony Starwood Homes, Invitation Homes, Silver Bay Homes, American Homes 4 Rent, Progress Residential and Tricon American Homes.

This first chart shows the pros and cons in single-family housing versus apartments for investors and residents.  

Click to enlarge

NRHC

(Source: NHRC)

This second chart set shows the risks and opportunities for investors in single-family housing.

Click to enlarge

NRHC

(Source: NHRC)

And for those investors that do choose to go into the single-family rental business, here are the spring’s hottest single-family housing markets. 

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3d rendering of a row of luxury townhouses along a street

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