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Berkadia: Single-Family Rental Market Continues Robust Growth
![](https://newslink.mba.org/wp-content/uploads/2024/01/SFR-rent-01-03-2024.jpg?w=600&h=449&crop=1)
(Image courtesy of Berkadia)
Berkadia, New York, released its latest outlook on single-family rentals and build-to-rent properties, finding the single-family rental market is the fastest-growing segment in the nation’s housing landscape.
Institutional capital has continued to grow in the single-family rental market, with $60 billion in 2022.
Single-family rents are expected to end 2023 with growth of 3%; Berkadia posited that they’ll grow more than 3.5% in 2024, more than 4% in 2025 and more than 5% in 2026. They are expected to outperform home prices and apartment rent growth.
From 2000-2019, single-family annual rent growth averaged 3.1%, compared to 2.8% for more traditional multifamily properties.
![](https://newslink.mba.org/wp-content/uploads/2024/01/SFR-BTR-Berkadia-01-03-24.jpg)
Within the build-to-rent space, specifically, asking rents rose more than 3% year-over-year in 16 U.S. markets as of March 2023.
Berkadia points to a number of factors as propelling the single-family rental demand. From a renter’s perspective, there’s appeal across generations, the rising cost of housing, migration patterns and neighborhood preferences, increased space requirements for many Americans as they continue to work remotely and demand for low-density living.
From an investor perspective, there’s current low institutional exposure for the asset class, strong operational fundamentals, options in exiting the investment and a national housing shortage that drives need.