Home / Daily Dose / Lack of Inventory Spurring Growth of Single-Family Rental Market
Print This Post Print This Post

Lack of Inventory Spurring Growth of Single-Family Rental Market


A report by CNBC states that more potential buyers will elect to remain rentals due to the lack of inventory and unaffordable housing market. 

CNBC’s Diana Olick said the stocks of REITs are increasing annually and those companies helping investors buy and sell rental properties are up and seeing “explosive growth.” 

“You can come to us with $5,000 and buy a share of a rental home, all the way up to if you have $500 million and you’re a large institution and want to put that to work,” said Gary Beasley, CEO, Roofstock. 

Olick said Roofstock launched just two years ago and has already surpassed $2 billion in rental property transactions.

CoreLogic reported that single-family rents rose 3.1% year-over-year in October 2019—an increase from 2.9% in October 2018—according to the Single-Family Rent Index. 

Single-family rents started climbing steadily in 2010 and have stabilized at around 3% since early 2019.  

CoreLogic states that rents on lower-priced homes increased 3.6% annually and rentes for higher-priced homes—properties with rents more than 125% of the regional median rent—rose 2.9% year-over-year. 

Rent growth for higher-priced homes gained momentum in October 2019, increased by 0.4% faster than in October 2018. The annual pace of annual rent growth for lower-priced rental homes slowed by 0.2%. 

Phoenix, Arizona, had the highest annual rent growth in October 2019 with an increase of 6.8%, followed by Seattle, Washington (5.8%) and Las Vegas, Nevada (5.4%). Miami, Florida, had the lowest rent growth in October, increasing by just 1% from the prior year. Miami had the lowest rent growth for nine straight months. 

About Author: Mike Albanese

Mike Albanese is a reporter for DS News and MReport. He is a University of Alabama graduate with a degree in journalism and a minor in communications. He has worked for publications—both print and online—covering numerous beats. A Connecticut native, Albanese currently resides in Lewisville.

Check Also

Creating Better Diversity Practices in Mortgage Servicing

In this Video Spotlight, hear from AMDC Chair Lola Oyewole on why you don't want to miss the 2020 Five Star Diversity Symposium in New Orleans, Louisiana.


Featuring daily updates on foreclosure, REO, and the secondary market, DS News has the timely and relevant content you need to stay at the top of your game. Get each day’s most important default servicing news and market information delivered directly to your inbox, complimentary, when you subscribe.