The Single-Family Rentals in Build-to-Rent Communities report by Yardi Matrix shares an update of the SFR market in 2024. Overall, single-family rentals are continuing to grow in built-to-rent communities. Both rent and occupancy growth have been strong in recent months while remaining a financially viable option for renters.
Over two-thirds of the top 30 metros have higher occupancy rates from single-family rentals in BTR communities than other multifamily assets.
4 Biggest Demand Drivers for Single-Family Rentals
But aside from price, what’s driving the demand? Four of the biggest demand drivers for single-family rentals are work-from-home professionals, household growth, the declining affordability of homeownership, and the demographics of Millennials and blue-collar workers.
1. Renters working from home
Because more than half (52%) of full-time workers are now returning back to the office, hybrid work is becoming the norm. Single-family rentals are more accommodating to this shifting demographic than traditional apartments; SFR offers a quieter environment and more space inside the home for the hybrid worker.
2. Household formation growth during the pandemic
Demand is also driven by household formation growth during the pandemic as a result of:
- Employment/wage growth.
- Stimulus payments.
- Increased savings.
3. Declining homebuying affordability
According to the Yardi Matrix report, 61% of renters in the largest metros are priced out of homebuying. The average home mortgage payment reached $2,547 at the end of 2023. Compare this to the average rent of $1,734 and renting looks like the better deal.
As the affordability of buying a home decreases, single-family rentals are prime for Millennials and blue-collar workers who would like to buy a house, but can’t.
4. Specific demographics
Those averaging a salary of $60,000 to $70,000 a year, individuals aged 24 to 40, and Millennials/blue-collar workers are largely driving the demand for single-family rentals in built-to-rent communities.
SFR development trends indicate that flexible designs and lot size by location are based on consumer preferences. For example, young singles and couples prefer pet-friendly units, while young families prefer large common areas.
RELATED: Multifamily rent remains flat at $1,710 in January
Development Trends
The four biggest single-family rental development trends as of 2024 include:
- Amenities. On-site maintenance and community areas are the most popular. Better parking, storage, privacy, and yard space is also highly desired.
- Smart home technology. This has become a “must” and will likely be standard soon, according to Yardi. Developers should plan for future demand such as electric vehicle charging in garages.
- Homes designed for frequent moving. Single-family rentals are using resilient materials like laminate faux wood flooring to maintain a durable, sleek look. Units are designed with wider hallways to accommodate the moving of furniture in and out of the home.
- Flexibility. Target demographics and location influence the design of build-to-rent communities. While younger renters would prefer pet-friendly units and large common areas, older singles and couples prefer an attached garage.
Click here to view the full Yardi Matrix Single-Family Rentals in Build-to-Rent Communities report.
Related Stories
| Aug 11, 2010
10% of world's skyscraper construction on hold
Emporis, the largest provider of global building data worldwide, reported that 8.7% of all skyscrapers listed as "under construction" in its database had been put on hold. Most of these projects have been halted in the second half of 2008. According to Emporis statistics, the United States had been hit the worst: at the beginning of 2008, "Met 3" in Miami was the only U.S. skyscraper listed as being "on hold". In the second half of the year, 19 projects followed suit.
| Aug 11, 2010
Structure Tone, Turner among the nation's busiest reconstruction contractors, according to BD+C's Giants 300 report
A ranking of the Top 75 Reconstruction Contractors based on Building Design+Construction's 2009 Giants 300 survey. For more Giants 300 rankings, visit http://www.BDCnetwork.com/Giants
| Aug 11, 2010
Skanska completes $74 million Harbor Towers project six months ahead of schedule
Skanska USA Building Inc. announced the completion of a $74 million rehabilitation project at Harbor Towers, a 40-story luxury condominium complex comprising two towers located on Boston’s waterfront. Skanska served as Program Manager and oversaw the repair and replacement work that dramatically enhanced the reliability, cost-effectiveness, and energy efficiency of the buildings’ MEP systems.
| Aug 11, 2010
Best AEC Firms of 2011/12
Later this year, we will launch Best AEC Firms 2012. We’re looking for firms that create truly positive workplaces for their AEC professionals and support staff. Keep an eye on this page for entry information. +
| Aug 11, 2010
Manitoba Hydro Place, Tornado Tower among world's 'best tall buildings,' according to the Council on Tall Buildings and Urban Habitat
The Council on Tall Buildings and Urban Habitat last week announced the winners of its annual “Best Tall Building” awards for 2009, recognizing one outstanding tall building from each of four geographical regions: Americas, Asia & Australia, Europe, and Middle East & Africa. This year’s winners are: Manitoba Hydro Place, Winnipeg, Canada; Linked Hybrid, Beijing, China; The Broadgate Tower, London, UK; Tornado Tower, Doha, Qatar.
| Aug 11, 2010
Call for entries: Building enclosure design awards
The Boston Society of Architects and the Boston chapter of the Building Enclosure Council (BEC-Boston) have announced a High Performance Building award that will assess building enclosure innovation through the demonstrated design, construction, and operation of the building enclosure.
| Aug 11, 2010
CampusBrands Inc., NYLO Hotels team to launch student housing franchise brand
Which would you choose: the cramped quarters, thin mattresses, and crowded communal bathrooms of dormitory life or a new type of student housing with comfortable couches, a game room, fitness center, Wi-Fi in every room, flat-screen televisions and maybe even a theater?
| Aug 11, 2010
Portland Cement Association offers blast resistant design guide for reinforced concrete structures
Developed for designers and engineers, "Blast Resistant Design Guide for Reinforced Concrete Structures" provides a practical treatment of the design of cast-in-place reinforced concrete structures to resist the effects of blast loads. It explains the principles of blast-resistant design, and how to determine the kind and degree of resistance a structure needs as well as how to specify the required materials and details.
