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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 [1] to read the full blog post.