Single-family rentals (SFR) total about 15 million units in the U.S., similar to the traditional rental apartment market.
Home prices have outstripped incomes over the past decade making it challenging to save for down payments.
Tech advances are improving sector inefficiencies, driving operating economies and institutionalization.
With attractive yield premiums compared to the traditional apartment sector and demand-supply dynamics expected to drive income growth, there’s opportunity in the single-family rental (SFR) sector in the U.S.
Several trends have driven positive performance for this sector of the U.S. real estate market, including changing demographics and a limited market supply. Many millennials are becoming long-term renters because homeownership is out of reach, while others like the flexibility of renting versus buying. Upgrades in technology and infrastructure advancements are making SFRs more attractive to larger, more sophisticated developers/owners.
Get the full story about SFR investing with our in-depth analysis.
Our investing lens: Consume, Live, Innovate, and Connect (CLIC)
The Invesco Real Estate (IRE) team takes a unique approach to investing — focusing on evolving secular themes and demand drivers in sectors where we Consume, Live, Innovate, and Connect (CLIC). Get a deep dive providing education, fundamentals, and performance on one of the ten sectors within CLIC each month.
Source: Invesco Real Estate. For illustrative purposes only.
After the recent issues at U.S. regional banks, concerns about commercial real estate have grown. Invesco Real Estate’s Bert Crouch joined this episode to discuss the shorter-term and longer-term opportunities he sees in the market.
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Important information
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Some references are U.S. centric and may not apply to Canada.
Past performance in not indicative of future results.
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