It’s not easy to judge the potential growth of single-market rentals because there’s no central clearinghouse collecting these statistics. However, data that is collected can be used to measure trends. This includes:
- Census data on the number of rental units purchased
- Mortgage origination activity from FreddieMac and FannieMae for single-family rentals
- Mortgage volumes serve as proxies for single-family rental values
- CoreLogic county records, which provide insights on local/county taxes and, indirectly, property valuations
Analyzing these numbers, we can guess at the rate of growth and size of the market up ahead. But then what?
Albert L. Lord III is the Founder and Chief Executive Officer of Lexerd Capital Management LLC. Lexerd is a real estate firm that primarily sponsors investments in opportunistic multifamily assets throughout the United States.