What Proportion Of Rental Properties Consist Of Single-Family Residences?

Single-family rentals have been a significant part of the rental stock in the US, with 80 of these being mom-and-pop properties. Mega-landlords own just 3, but they dominate multifamily rentals. The share of renters living in single-family homes in the US is also significant, with 35 of US households renting homes, including traditional apartments, and 26 of them living in detached single-family homes.

In 2019, 14 million U. S. households lived in a rented single-family unit, accounting for one-third (33%). However, the number of renters living in single-family homes fell to 14. 1 million in 2022, down 1. 2 from 2021. Despite this slight decline, single-family homes remain the second-largest rental housing in the country. Large institutions owned roughly 5 of the 14 million single-family rentals nationally in early 2022, and by 2030, they may hold around 7. 6 million homes.

Single-family home rent prices increased 5. 3 year-over-year, making it the largest percentage of single-family homes rented. Factors contributing to this increase include lower interest rates, which make homeownership more attractive. In 2022, 81, 000 single-family rental homes were started, accounting for 8% of single-family starts.

The market share of single-family attached rental homes has increased, with approximately 30 of single-family homes in the United States being rented. In the nation’s 100 largest metros, detached single-family homes make up 24% of the rental stock, and they make up about 6% of all new homes being built in the United States. Investors now own 3. 4% of single-family detached homes in the seven-county metropolitan area.

Who Owns A Single-Family Rental Property?

Significant changes have occurred in the ownership of single-family rentals in the US over time, with a notable increase in properties owned by business entities and large rental operators. Key findings about investor activity reveal that of the 146 million housing units, 14 million are vacant, including 8 million single-family homes. Among 132 million occupied units, 45 million are owned by landlords. As of 2022, estimates indicate that institutional investors owned between 450, 000 and 574, 000 single-family rental homes, highlighting a shift in ownership dynamics.

Historically, individual investors, often referred to as "mom-and-pop landlords," comprised about three-quarters of the rental market in 2015, with their share declining as institutional ownership rose from 17. 3% to approximately 25% by 2021. Despite this, individuals still own the majority of single-unit rentals (72. 5%), while for-profit businesses dominate larger properties. Invitation Homes, the largest single-family rental company, managed over 80, 000 homes as of 2021 and reported record profits in 2020, indicating a growing trend in the institutional dominance of the sector.

Additionally, GAO estimates show institutional ownership variances across cities, influencing rental prices nationwide. The rise of institutional investors in single-family rentals represents a substantial shift within the housing landscape, impacting both rental prices and market dynamics.

What Percentage Of Households Live In Single-Family Homes?

In 2022, nearly half of renting households (47%) resided in apartment buildings with five or more units, while 31% lived in single-family homes, 17% in buildings with two to four units, and about 4% in mobile homes. In rural areas, single-family homes accounted for up to two-thirds of rental stock. There were 37. 9 million one-person households, representing 29% of U. S. households, a significant increase from 13% in 1960. From 2002 to 2022, the percentage of U.

S. families with children under 18 declined. As of 2021, out of 129 million occupied housing units, approximately 82 million were single-family homes, mostly owner-occupied. In 2019, about 80 million U. S. households were family households. The 2020 Census counted 331. 4 million people in the U. S., with 323. 2 million in households and 8. 2 million in group quarters. The majority of renters (31. 4%) lived in multifamily units; California's homeownership was at 55.

2% in 2018. The U. S. also has a high percentage of single-parent households, with 15. 09 million children living with single mothers and 3. 05 million with single fathers in 2023. The median size of newly completed single-family homes grew to 2, 299 square feet in 2022. The homeownership rate in the U. S. was 65. 6% in Q2 2024, remaining stable from late 2023.

What Percentage Of Renters Live In Single-Family Homes?

In the United States, 27% of renter-occupied homes are detached single-family units, with 35% of renters residing in single-family houses. Rental households are predominantly made up of younger individuals, with nearly half of renters under 30 years old in 2022. Most renters live in apartments, comprising 52% of the rental population; however, there are approximately 14. 1 million single-family renters, accounting for 31. 5% of all rental households. The overall number of renters living in single-family homes slightly declined from 2021, yet this housing type remains the second-largest segment of rental housing.

In terms of housing and financial health, the median household income for renters is notably lower than that of homeowners. Homeowners have significantly higher wealth levels, with the median household wealth for homeowners reported at $3, 709 more than renters. Additionally, housing costs are rising, with rents and home prices increasing faster than overall inflation in 77% of U. S. counties. Amidst the shrinking gap between homeowners and renters, 60% of renters pay their rent online. A significant portion of U. S. households (36%) rent, and many renters exhibit varying living arrangements and preferences for single-family units, townhouses, or multi-unit buildings.

Why Are Investors Buying Single-Family Homes?

Wall Street's investment in single-family rental homes is on the rise due to high housing demand, shifting renter preferences towards these homes over apartments, low interest rates, and the growing capacity provided by big data for effective property management. Investors find single-family homes appealing due to their suitability for remote work and online schooling, along with being more affordable and appreciating in value faster than multifamily properties.

According to MetLife Investment Management, institutional investors could control 40% of U. S. single-family rental homes by 2030. During the pandemic, these investors spent billions on homes, accounting for over a quarter of single-family home sales at peak times. In the fourth quarter, single-family homes made up 68. 6% of investor purchases, followed by condos and townhouses. Institutional investors have increasingly entered the market after the Great Recession when many homes were available at discounts due to foreclosures.

They now view single-family homes as high-return investments amidst rising prices and loan costs, leading to increased competition with smaller-scale investors. The UK also sees significant momentum in its single-family housing sector, with investors spending £1. 9 billion acquiring homes. Rising interest rates and home prices have made rentals an attractive alternative for many potential buyers.

What Percentage Of Small Rental Properties Are Owned By A Company?

In 2018, estimates by Adam Travis using Zillow ZTRAX data indicated that investors owning 1, 000 or more properties held only 2% of small rental units, such as single-family homes and 2-4 unit multifamily structures, while 12% of these properties were owned by corporate entities. Meanwhile, individual investors owned 72. 5% of single-unit rental properties and 69. 5% of properties with 25 or more units. A 2022 GAO report revealed that institutional investors possessed 450, 000 single-family rental homes; however, the Urban Institute estimated this number to be 574, 000.

Individual investors managed to maintain significant ownership, holding 37. 6% of rental units and 70. 2% of those in properties with four or fewer units. Over 70% of small rental properties (1-4 units) are owned and managed by individual "mom-and-pop" landlords. With almost 88. 5% of landlord-owned properties being single-family units, 80% of these are owner-managed. As per the U. S. Census Bureau, institutional investors increasingly acquire single-family rental homes, reflecting a shift toward larger ownership structures. Nearly half of American renters were under 30 years old by 2022, often with lower incomes than homeowners, indicated by rising rental occupancy rates nearing 100% and substantial rent increases.

Who Is The Largest Owner Of Single Family Homes?

Invitation Homes, the largest owner of single-family rental homes in the U. S., has experienced a notable shift in its operational strategy, becoming a net seller for the third consecutive quarter. As of the end of Q2 2023, the company owned 8, 889 homes in Phoenix, a slight decrease from 8, 906 homes in Q3 2022. During the second quarter of 2023, Invitation Homes sold off 378 homes while only acquiring 276. This trend indicates challenges in finding properties to purchase amidst a competitive housing market.

In the broader landscape, Blackstone Group remains the largest single-family home buyer, having invested approximately $2. 5 billion in about 16, 000 homes across various U. S. cities. Progress Residential follows as a top landlord with around 85, 000 homes, while Invitation Homes has a portfolio of approximately 80, 000. A report by the Urban Institute highlighted that institutional investors owned 574, 000 single-family homes by mid-2022, with projections suggesting institutional ownership could rise significantly by 2030.

Despite a decline in iBuyer activity, companies like Opendoor and Offerpad maintain a significant presence among the leading purchasers of single-family homes.

What Percent Of Single-Family Homes Are Owned By Investors?

Investor-owned homes peaked in December 2022, representing 28. 7% of all U. S. home sales. MetLife Investment Management predicts institutional investors could control 40% of single-family rental homes by 2030. Investment companies already own about 25% of the single-family market, with investor purchases accounting for 22% of homes in 2022. According to John Burns Real Estate Consulting, 19% of single-family homes are investor-owned. Single-family homes comprised 74.

4% of investor purchases, with data showing GAO recorded 450, 000 single-family rentals owned by institutional investors in 2022. However, the Urban Institute estimates this figure to be 574, 000. In March 2023, investors accounted for 27% of all single-family homes bought. By the third quarter of 2023, investor purchases of single-family homes spiked to 44% of flipped houses, despite claims of Wall Street monopolizing the market being overstated.

Nationally, single-family homes accounted for 68. 9% of investor purchases early in 2023. Estimates indicate that these investors own 3. 4% of the single-family homes in certain metropolitan areas. Overall, the trend of rising investor ownership in single-family homes reflects a significant shift in the housing market dynamics in the U. S.

What Percentage Of Single-Family Rentals Are Owned By Large Institutions?

As of early 2022, large institutions owned approximately 5% of the 14 million single-family rentals in the U. S. Forecasts from MetLife Investment Management suggest that by 2030, this ownership could rise to about 7. 6 million homes, representing over 40% of the total single-family rental market. Reports by the GAO and Urban Institute estimate that institutional investors owned between 450, 000 to 574, 000 single-family homes as of 2022.

Historically, by 2015, these investors owned an estimated 170, 000 to 300, 000 homes, but the landscape has changed, with corporations and financial institutions increasingly dominating the rental market.

While they currently control a small overall share (approximately 2-3%), their increasing presence has sparked discussions about potential impacts on home prices and rents, especially post-financial crisis. In metropolitan areas like Atlanta and Memphis, over 40% of rentals are owned by large corporations. Overall, non-individual investors owned around 25% of single-family rentals in 2021, highlighting a growing trend towards institutional ownership within this sector. By 2030, projections indicate that Wall Street could significantly influence the single-family rental market.

How Many Single-Family Rental Homes Are There In The US?

As of 2021, there were approximately 14. 3 million households renting single-family homes in the United States, representing around 33% of all renters. This figure is slightly down from 14. 1 million in 2020 and 14 million in 2019. The trend indicates a decline in single-family rentals in recent years, likely due to a strengthening for-sale market that has led many homes to revert to owner occupancy. In 2019, over 45 million individuals lived in rented single-family homes, with young, modest-income households with children being prominent among these renters.

As of 2022, nearly half of American renters were under the age of 30, and a significant proportion faced economic challenges, with 28% paying over 50% of their income on rent. The majority of U. S. housing units are single-family homes, totaling about 82 million of 129 million occupied units as of 2021. Institutional investors have been increasingly acquiring single-family rental properties, owning over 450, 000 homes as of 2022, with estimates suggesting larger ownership in the following years.

The rental market remains dynamic, with an upward trend in the number of renters since 2010 and increasing median rents projected at 26% for multifamily units and 41% for single-family homes by mid-2024.

What Percentage Of Millionaires Own Homes?

As of 2019, 43% of millionaires in the United States owned only one home, while 8. 5% owned five or more. Additionally, 90% of millionaires have a primary residence, with Baby Boomers leading at 93% ownership. Overall, millionaires own an average of two homes. Despite common beliefs, homeownership does not guarantee wealth; only two-thirds of Americans own homes, and a mere 8. 2% have properties valued at over a million dollars. The average millionaire prefers to own a single property, with millennials owning an average of three, particularly in places like California.

Contrary to assumptions, more than half of millionaires reside in neighborhoods where the average household income is below $75, 000. In 2023, there were close to 30 million millionaires in the U. S., representing 18% of American households, including home equity. A substantial number of millionaires, approximately 90%, build their wealth through real estate investments. This trend underscores the significance of real estate in wealth accumulation, as much more fortune has been gained from real estate than from industrial ventures over time.

How Many Single Family Homes Are Rented In The US?

Single-family rentals (SFR) represent approximately 14 million households in the U. S., making it the second-largest rental housing type. Despite a rise in institutional investor activity, the number of SFR households has fallen in five of the last six years. In the U. S., about 82 million of the 129 million occupied housing units are single-family homes, predominantly owner-occupied. In 2022, nearly half of American renters were under 30, and renters generally have lower incomes than homeowners.

A survey indicated 55% of renters lived in apartments, while approximately 44 million residents rent single-family homes. Phoenix, Arizona has noted a 12. 2% increase in SFRs. From 2021 to 2023, median sales prices for single-family homes rose, with most newly constructed SFRs featuring central air-conditioning. By 2022, the number of renters in single-family homes declined to 14. 1 million, approximately 31. 5% of all rental households. Despite this decline, there are still significantly more single-family renters than 20 years prior.

Rising rents have outpaced median incomes in 88% of U. S. counties from 2000 to 2020. In 2023, starts for single-family build-for-rent units increased to 90, 000, indicating ongoing demand in the housing market.