🏘 🐂 SFR housing rents have remained resilient in the face of record low housing affordability. In fact, there is strong pricing power from the large institutional SFR operators given savvy market and neighborhood selection.

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"Houses Too Expensive to Buy Underpin Lofty Rents, Single-family home rents are rising more than apartments this year" The Wall Street Journal (11/20)

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👨👩👦 🏦 In an environment where the cost of owning is 52% more expensive than the cost of renting, the secular trend of ⚡ "Renter by Choice" ⚡thesis is playing out.

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👨💼 🔦 As Tricon Residential CEO Gary Berman puts it simply "In such a distorted environment for home buyers, the case for rental is more compelling than ever"

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💡 🗝 Quick Highlights

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▶ ⏯ Single-family home rents are rising more than apartments this year🛫 🌅 Big public companies that rent out single-family homes are beating the rest of the rental market this year, thanks to tenants who are paying large rent increases on the sorts of homes they increasingly can’t afford to buy.

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👩💻👨💻 Housing analysts said that the largest single-family landlords can also collect outsize rent increases because of the types of neighborhoods where they choose to invest.

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👩💻👨💻That is usually in places with above-average job growth and school quality, where tenants are the most likely to absorb higher rents, instead of paying high moving costs, said Haendel St. Juste, an analyst at Mizuho. Landlords also gain more market knowledge about rents when they buy up a large share of houses in a given neighborhood, said Michael Goldsmith, a housing stock analyst at UBS.

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👩💻 Housing analysts said that the largest single-family landlords can also collect outsize rent increases because of the types of neighborhoods where they choose to invest.

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✅ That is usually in places with above-average job growth and school quality, where tenants are the most likely to absorb higher rents, instead of paying high moving costs, said Haendel St. Juste, an analyst at Mizuho.

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✅ Landlords also gain more market knowledge about rents when they buy up a large share of houses in a given neighborhood, said Michael Goldsmith, a housing stock analyst at UBS.

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✅ Renters of houses tend to be wealthier than apartment renters and are more likely to eventually own a home, analysts said. But there are fewer of these renters willing or able to make the switch to ownership at today’s prices and mortgage rates, giving rental-home landlords an upper hand.

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‍#sfr#housing #housingaffordability‍

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