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Five things that might surprise you about the fastest-growing segment of the housing market

The Urban Institute’s Sarah Strochak writes:

One of the most pronounced shifts in the housing market since the financial crisis has been the evolution of the single-family rental (SFR) market. Today, single-family rentals (one-unit, attached and detached) account for 35 percent of the country’s 44 million rental units, compared with 31 percent in 2006. More than half of renters live in structures with less than four units.

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Growth in SFRs has outpaced growth of single-family owner and all multifamily housing in recent years. Data from NAREIT shows the SFR sector has seen growth every year since the crisis and has lingered around a 30 percent growth rate for the past three years, compared with less than a 15 percent growth rate for the multifamily market during that same period. The single-family owner market began to grow again in 2016, after declining for seven years.

The number of households in the US is continuously increasing, but with growth in owner-occupied units stagnating, almost all the housing demand in recent years has been filled by rental units.

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