Tag Archives: Single-Family Rentals

As prices rise, investors are having a harder time justifying housing market purchases, according to a recent Campbell/Inside Mortgage Finance HousingPulse Tracking survey. In May, the share of home purchases from investors fell to the lowest level in more than three years, dropping to 20.2 percent from 22 percent in April, according to the survey.

As the rise in single-family rents slows and operating costs increase, Radar Logic stressed the need for institutional investors to focus on properties sold at steep discounts in order to yield a profit from rentals. While institutional investors tend to pay less for single-family homes compared to individual homebuyers since they buy in bulk, the discounts offered for properties vary widely, depending on the market, Radar Logic explained. In order to pinpoint markets where investors are finding the biggest discounts, Radar Logic tracked prices paid by large-scale investors in some 300 metro areas.

With the spring house hunting season upon us, Trulia reported a 7.2 percent year-over-year increase in asking prices on the national level. On a seasonally adjusted basis, prices rose 1.1 percent month-over-month. On the other hand, rent price growth--for single-family homes, at least--showed signs of stagnancy in March. Nationally, rent for single-family homes increased 0.1 percent year-over-year. ""Why have rents stopped rising on single-family homes? More supply,"" explained Jed Kolko, chief economist at Trulia.

The fast-growing population of single-family renters is more likely to dwell in their home for longer periods of time compared to multifamily occupants, which suggests demand for single-family rentals offers greater stability than the multifamily market, according to a new survey from Premier Property Management Group. In a survey of renters conducted by ORC International, 26 percent of single-family renters said they were more likely to stay in their current home five or more years compared to 22 percent of apartment dwellers. Single-family renters were also characterized as earning more income, but are more likely to have a bigger household.