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Examining Single-Family Rental Return on Investment

In CoreLogic’s U.S. Economic Outlook for May 2018, CoreLogic Chief Economist Dr. Frank Nothaft puts single-family rental investment under the microscope. According to CoreLogic, “one-family rental houses, either detached or attached, have grown from 11.3 million in 2006 to 15.3 million in 2016, or from 17 percent to 23 percent of the one-family occupied stock.”

Using data from CoreLogic’s Home Price Index and Single-Family Rental Index along with Census Bureau survey data, CoreLogic examined how SFR investment performed during the years between 2004 - 2017. CoreLogic also compared single-family rental investment to other types of real estate investment, including industrial, retail, multifamily, office, and hotel. CoreLogic found that SFR annual total return averaged 9 percent, as compared to 13 percent for industrial and 8 percent for hotel.

You can see Nothaft break down SFR investment in the video above, or click here to read the full blog post.

About Author: David Wharton

David Wharton, Editor-in-Chief at the Five Star Institute, is a graduate of the University of Texas at Arlington, where he received his B.A. in English and minored in Journalism. Wharton has nearly 20 years' experience in journalism and previously worked at Thomson Reuters, a multinational mass media and information firm, as Associate Content Editor, focusing on producing media content related to tax and accounting principles and government rules and regulations for accounting professionals. Wharton has an extensive and diversified portfolio of freelance material, with published contributions in both online and print media publications. He can be reached at [email protected].
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