Demographic trends counter flattening rent growth and occupancy
SANTA BARBARA, Calif., March 26, 2025 – Although its growth rate has slowed over the past two years, the institutional single-family rental market continues to boast strong fundamentals, according to a new research bulletin from Yardi® Matrix.
Formed in the wake of the global financial crisis, the institutional single-family rental market remains in a “growing pains” stage. Year-over-year rent growth has decelerated recently, registering 0.2% nationally as of February, and the occupancy rate has declined over the past two years.
However, “demand for renting single-family homes has been strong and likely will remain robust for demographic and lifestyle reasons,” the bulletin notes, with the market appealing to renters who need space for children or pets, divorced people with children and workers seeking space for home offices, among others. The high cost of homeownership and weak home sales also benefit single-family rentals.
The segment produced a solid $2.2 billion in transactions in 2024, concentrated in high-growth markets such as Phoenix, Atlanta, Charlotte, N.C., and Denver, where the bulk of the market’s stock is located.
Learn more about the challenges and opportunities associated with the dynamic single-family rental market.
Yardi Matrix offers the industry’s most comprehensive market intelligence tool for investment professionals, equity investors, lenders and property managers who underwrite and manage investments in commercial real estate. Yardi Matrix covers multifamily, affordable, student housing, vacant land, industrial, office, retail and self storage property types. Email [email protected], call (480) 663-1149 or visit yardimatrix.com to learn more.
About Yardi
Yardi® develops industry-leading software for all types and sizes of real estate companies across the world. With over 10,000 employees, Yardi is working with our clients to drive significant innovation in the real estate industry. For more information on how Yardi is Energized for Tomorrow, visit yardi.com.