Publications

- June 1, 2019: Vol. 31, Number 6

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Block by block: Single-family rentals offer steady performance and improving operating efficiencies, despite a fragmented investor market

by Beth Mattson-Teig

Opportunistic investors that raced into the single-family rental market a decade ago on the heels of the housing crash are finding the story has changed. Now, instead of bargain-basement prices, the sector boasts improved operating efficiencies that are helping to generate steady yields and attract capital with longer-term strategies.

Evolution of the sector has brought more transparency, with performance metrics that show a solid track record of favorable occupancies, rent growth and operating margins. More institutions are now stepping into this highly fragmented market, which appears to have a fairly strong tailwind for renter demand. “All bets are off if the economy hits a recession and capital dries up, but under the current scenario, there is still plenty of capital looking to invest in this sector,” says John Pawlowski, a senior analyst at Green Street Advisors.

Institutional investors make up a tiny fraction of the single-family rental market. According to

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