The Single Family Rental (SFR) sector is trending in investment news but what is making this trending topic so newsworthy?
Here are the top 3 reasons you should keep your eye on the SFR sector as an investment opportunity for your clients.
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Renters by Necessity
Out of the 121 million households in the US, 37% of those are renters1. 82% of renters view renting as more affordable than homeownership2. Renting a home can provide more flexibility to the tenant and takes some of the maintenance headaches out of the equation.
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Suburban Millennial Demand
Millennials are credited with a lot of different trends but surprised the nation when they chose to flock to the suburbs ultimately needing affordable rental options. 1.7 million households formed annually between 2017 and 20193 and that number is expected to increase.
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Supply is Limited
Only 10% of new home sales are under $200,0005 making home ownership a less feasible choice for those looking for a lower price point. While over 4 million SFRs have been added since the Great Recession, America is massively underbuilt in the workforce price point where there is a shortage of 7.4 million affordably priced homes6.
Want to learn more about SFR and how NexPoint is navigating this trending Real Estate Sector?
- Green Street Advisors, US Housing Dynamics, as of June 2020.
- Freddie Mac, Profile of Today’s Renter and Homeowner, June 2019
- Land and Buildings, pg 2
- Green Street Advisors Advisory & Consulting Group. There is no guarantee that the objective will be achieved.
- John Burns Real Estate Consulting. Published June 2020.
- Freddie Mac, Spotlight on Underserved Markets, 2018 and National Low-Income Housing Coalition.
