Progress Residential on the State of the Single-Family Rental Market
February 7, 2022 | Paul Bergeron | GlobeSt.com
Single-family rentals were perhaps the most talked-about real estate vertical in 2021. Many investors that typically target multifamily and other real estate sectors took a peek at SFR, largely due to its unique product offering.
And as the SFR space continues to emerge, it has its nuances with regard to target markets, supply landscape and operating models.
“There are more than 15 million single-family rentals in this country, and the industry is undergoing a critical transformation that will continue to bring professional management services to a large and underserved consumer segment,” said Dave Feldman, executive vice president of strategic operations at Progress Residential. “We’ll continue to see a surge in demand for quality affordable housing, and within that, a surge in demand for quality affordable rental housing.”
Progress Residential is the largest privately owned owner of SFRs with more than 75,000 homes in its portfolio.
Feldman indicated that a significant part of SFR demand is being fueled by an aging millennial generation and an aging-in-place boomer demographic, combined with an increased preference to rent. SFR attributes (yards, garages, more space) closely align with the needs of these demographics. These drivers are expected to persist for the next 10 to 15 years.
