Soaring demand and under supply for residential rental units bodes well for the growth of single-family rentals. This real estate segment is projected to outpace multifamily, office, retail, self-storage, and hospitality growth in the next three years.
More than 4.5 million residential units are needed across all price points by 2030 just to satisfy current rental demand, points out Kevin Maggiacomo, CEO and president of a Boston-based commercial real estate investment firm in a GlobeSt article. The number of single-family rental households rose by more than 36% since 2005.
Over the same period, the number of all US households increased by 11%, and the total number of owner-occupied single-family households grew by less than 5%. Demand for single-family rentals is expected to expand by about 750,000 units during the next five years.
Economics