Despite temporary stall, institutional SFR growth a good long-term bet

The amount of single-family rental (SFR) stock has increased 40 percent since the beginning of 2019 and has doubled since 2014, according to Yardi Matrix. The number of properties in institutional SFR communities with 50 or more units tracked by Matrix was 141,000 as of midyear 2023 and is growing rapidly.

Some growth is the result of acquisitions, but most represents the expansion of the BTR sector. Investors increasingly recognize that banking growth on individual property acquisitions can be risky and that they have more control over quality and costs if they build properties themselves.

The sector completed a record 14,858 BTR units in 2022 and is on track to match that pace this year, with 6,600 units delivered through June. Meanwhile, just shy of 50,000 units are under construction, which is an indication that the growth in BTRs is certain to accelerate.

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