Single-Family Rentals Outpace Apartment Rentals
According to a recent report by Multifamily Executive, the numbers reflect status of single-family rentals as fastest-growing housing sector from 2007 to 2016. If you’re an aspiring tenant, you can utilize tools like a rent to income ratio calculator in order for you to determine how much rent you can afford so you won’t encounter financial mishaps in the long-run.
Single-family rentals have been the fastest growing segment of housing over the past 10 years, outpacing two bedroom apartments. This rise in linear living, caused by the inability to attain homeownership for many of today’s residents after the housing market crash, has been more drastic in some markets than others. If you are interested in investing in rental properties, you may also need to look for a property management company to help you make it a successful business. For any disputes on the lease or contract, consult a landlord tenant lawyer to review the legal documents and determine the best solution.
RENTCafé recently studied 30 of the nation’s largest cities to determine which markets saw the most growth in single-family rentals. Overall, the number of single-family rentals in the U.S. grew by 31% (3.6 million units) from 2007 to 2016, while multifamily rentals grew by 14% (3.2 million units).
Phoenix tops the list with the biggest percentage increase in single-family rentals, jumping by 77% (from 56,900 in 2007 to 100,800 in 2016), compared with only a 21% increase in the city’s multifamily units.
Phoenix was followed by Boston, with a 63% increase in single-family rental homes versus a 20% increase in apartments.
The third-fastest-growing city for single-family rentals was Fort Worth, Texas, with 60%, compared with a 17% increase in apartments. Rounding out the top five are Austin, Texas, and Charlotte, N.C., each with a 55% increase.
Take a closer look at all the cities with a rapidly growing single-family rental market here:
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According to Census data, the five largest stocks of single-family rentals in a city are in Los Angeles (184,000), Philadelphia (111,600), Houston (102,100), Phoenix (100,800), and New York (94,000).
Single-family rentals are more common in suburban areas, with 70% located outside the boundaries of the largest principal city of a metropolitan area. Smaller metros have the largest share of single-family rental homes when it comes to housing type. To learn more about how rental properties are valuated just hit the link.
The Oklahoma City metro area has the largest share of single-family rentals in the country, with almost half (48%) of its rental stock made up of single-family homes. Oklahoma City is followed by Memphis, Tenn., with 45% of its total rentals comprising single-family homes, followed by Detroit, with 44%.
Large metros favor apartment rentals. The New York City–Newark–Jersey City metro has the smallest share of single-family rental homes, as apartments make up 89% of the MSA’s total rental units, followed by Boston, with 86%, and Chicago, with 76%.
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Parker Associates works extensively on understanding your market, your consumer, and your goals. We don’t just make it up, we take the time and commit the resources to researching the market and the consumer make sure we get it right. We are YOUR advocate by being the Consumer advocate.
Spend time looking at what you are trying to acquire, develop, or sell to learn how you can improve the success of what you are offering. Parker Associates helps understand the consumer by answering WHO will buy, WHAT they will buy, and HOW they will buy it. When the research is completed and the analysis is done, having the answers to these questions will reveal what will provide the best success for your project. Keep asking WHO, WHAT, and HOW and keep developing to fit the need.
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David WB Parker is a principal of Parker Associates of Jacksonville, Florida, marketing consultants to the real estate industry; President of PTC Computer Solutions, IT Specialist, and an active real estate sales professional with PARFAM REALTY based in Jacksonville, FL. He can be reached at 904-607-8763 or via email davidwb@parkerassociates.com.
Parker Associates works extensively on understanding your market, your consumer, and your goals. We don’t just make it up, we research it ad infinitum to make sure we get it right. We are your advocate by being the advocate of the consumer.
Spend time looking at what you are trying to acquire, develop, or sell to learn how you can improve the success of what you are offering. Parker Associates helps understand the consumer by answering WHO will buy, WHAT they will buy, and HOW they will buy it. When the research is completed and the analysis is done, having the answers to these questions will reveal what will provide the best success for your project. Keep asking WHO, WHAT, and HOW and keep developing to fit the need.