Institutions that once focused solely on multifamily assets are increasing allocations across a broader spectrum of rental housing strategies. Supply/demand fundamentals paint a fairly compelling picture for market-rate and affordable residential investments. “We’re subscribers to the belief that the U.S. is undersupplied on quality product that is affordable to live whether you’re owning it or renting it,” says Michael Joyce, managing director, research and strategy, at Greystar. Estimates on that shortage vary. According to Freddie Mac, the shortfall in market-rate housing alone across both for-sale and for-rent properties amounts to some 3.8 million units. Greystar places the shortage at closer to 6 million units.

Although apartments have long been a staple within institutional real estate portfolios, capital flows into “alternatives” — single-family rentals (SFR) and student, senior and manufactured housing — have increased as those sectors have matured an