The rise in the single-family rental and build-for-rent market has been driven by several factors that were ultimately accelerated by the pandemic, according to Trepp. Declining homeownership due to rising house prices, increased demand as families looks for larger alternatives to their city apartments, and the rising demand for homes has played a large part in the market's growing presence.
In 2020 alone, more than 50,000 rental homes were built, roughly 66 percent more than the average built during the past four decades.
In 2020, CMBS issuance for the single-family rental sector reached $8.3 billion, double the amount issued in 2019. CMBS issuance volume for other commercial real estate assets typically declined in 2020. Large investors have continued to move into the space, and CMBS issuance for the single-family rental sector remains solid in 2021, with total volume already reaching $3.1 billion four months into the year.
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