GITNUX REPORT 2024

Insights into the Lucrative Single Family Rental Market Revealed

Exploring the lucrative world of Single-Family Rentals: Valued at $4.5 trillion, what you need to know.

Author: Jannik Lindner

First published: 7/17/2024

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The average single-family rental property appreciates at 3-4% annually

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Single-family rentals typically yield 6-8% annual returns

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Single-family rental homes have appreciated 28% on average over the past 3 years

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The average single-family rental property generates $14,000 in annual rental income

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Single-family rental properties have a 15% higher price-to-rent ratio compared to multifamily properties

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Single-family rental properties have experienced a 5.3% increase in property values over the past year

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The average single-family rental property has a cap rate of 6.5%

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The number of single-family rentals in the US increased by 31% between 2007 and 2016

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The number of single-family rentals in the US increased by 3.6 million between 2006 and 2016

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Single-family rentals have experienced a 13% increase in demand since the start of the COVID-19 pandemic

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Single-family rentals account for 35% of all US rental housing

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Single-family rentals make up 42% of the residential rental property market

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The single-family rental market is valued at approximately $4.5 trillion

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Single-family rental occupancy rates average 95%

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Single-family rental properties have an average vacancy rate of 5%

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Institutional investors own less than 2% of single-family rental properties

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52% of single-family rentals are owned by investors with 1-2 properties

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The average age of a single-family rental home is 37 years

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Single-family rental homes have an average of 3 bedrooms

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The average size of a single-family rental home is 1,500 square feet

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Single-family rental homes have an average lot size of 0.25 acres

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The average single-family rental property has 1.5 bathrooms

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The average single-family rental property has 2 parking spaces

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The average single-family rental property has central air conditioning

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The average single-family rental property has a washer and dryer

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The average single-family rental property has a garage

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Single-family rentals have a 50% lower turnover rate compared to multifamily properties

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The average annual maintenance cost for a single-family rental is 1% of the property value

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Single-family rentals have a 33% lower operating expense ratio compared to multifamily properties

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The average single-family rental property takes 24 days to lease

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65% of single-family rental properties are managed by their owners

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The average single-family rental property takes 45 days to renovate between tenants

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Single-family rental properties have a 25% lower tenant turnover cost compared to multifamily properties

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The average single-family rental property requires $2,000 in annual maintenance costs

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The average single-family rental property takes 60 days to purchase and set up for renting

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Single-family rental properties have a 40% lower insurance cost compared to multifamily properties

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Single-family rental properties have experienced a 3.5% increase in property taxes over the past year

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The average single-family rental property takes 21 days to fill a vacancy

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Single-family rental properties have a 30% higher average security deposit compared to multifamily properties

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Single-family rental properties have experienced a 2.5% increase in property management fees over the past year

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The average monthly rent for single-family homes in the US is $2,018

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Phoenix, AZ has the highest year-over-year increase in single-family rent at 13.5%

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Single-family rental properties have experienced a 7.8% year-over-year increase in rent prices

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The average length of stay in a single-family rental is 3 years

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70% of single-family renters expect to buy a home in the future

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76% of single-family rental tenants have pets

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Single-family rentals have a 20% higher renewal rate compared to multifamily properties

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30% of single-family rental tenants work from home

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80% of single-family rental tenants rate their rental experience as satisfactory or very satisfactory

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55% of single-family rental tenants have lived in their current rental for 2 years or more

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60% of single-family rental tenants prefer properties with outdoor space

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Single-family rental properties have a 10% higher tenant satisfaction rate compared to multifamily properties

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70% of single-family rental tenants are satisfied with their current rental's location

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85% of single-family rental tenants pay their rent on time

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40% of single-family rental tenants have a pet dog

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Single-family rental properties have a 20% higher average lease renewal rate compared to multifamily properties

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55% of single-family rental tenants are interested in rent-to-own options

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44% of single-family rental households have children

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35% of single-family rental tenants are millennials

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The average credit score of a single-family rental tenant is 650

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40% of single-family rental tenants have a household income between $50,000 and $100,000

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The average age of a single-family rental tenant is 39 years old

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45% of single-family rental tenants have a college degree

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25% of single-family rental tenants have a household income over $100,000

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50% of single-family rental tenants have children under 18 living with them

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Summary

  • Single-family rentals account for 35% of all US rental housing
  • The single-family rental market is valued at approximately $4.5 trillion
  • Institutional investors own less than 2% of single-family rental properties
  • The average age of a single-family rental home is 37 years
  • Single-family rental homes have an average of 3 bedrooms
  • The average monthly rent for single-family homes in the US is $2,018
  • Single-family rental occupancy rates average 95%
  • The number of single-family rentals in the US increased by 31% between 2007 and 2016
  • Phoenix, AZ has the highest year-over-year increase in single-family rent at 13.5%
  • 44% of single-family rental households have children
  • The average length of stay in a single-family rental is 3 years
  • Single-family rentals have a 50% lower turnover rate compared to multifamily properties
  • 70% of single-family renters expect to buy a home in the future
  • The average single-family rental property appreciates at 3-4% annually
  • Single-family rentals typically yield 6-8% annual returns

With single-family rentals dominating the US housing market like a boss, accounting for a whopping 35% of all rental housing, its clear that investing in these properties isnt just a trend - its a powerhouse sector thats here to stay. From the impressive $4.5 trillion market value to the 95% occupancy rates and the tantalizing 6-8% annual returns, these homes are not just places to live; theyre gold mines waiting to be tapped into. So, buckle up, property moguls, because the single-family rental market is where the real estate magic happens - and the numbers dont lie!

Investment Performance

  • The average single-family rental property appreciates at 3-4% annually
  • Single-family rentals typically yield 6-8% annual returns
  • Single-family rental homes have appreciated 28% on average over the past 3 years
  • The average single-family rental property generates $14,000 in annual rental income
  • Single-family rental properties have a 15% higher price-to-rent ratio compared to multifamily properties
  • Single-family rental properties have experienced a 5.3% increase in property values over the past year
  • The average single-family rental property has a cap rate of 6.5%

Interpretation

In the world of real estate, single-family rental properties are like the dependable, ever-stylish friend who just keeps getting better with age. With an average annual appreciation of 3-4% and a solid 6-8% yield, these properties are the high achievers of the rental market. Over the past 3 years, they've experienced a jaw-dropping 28% appreciation, proving that their timeless charm never goes out of style. Generating a cool $14,000 in annual rental income, they're not just easy on the eyes—they're also great at making money. And let's not forget their knack for standing out in a crowd; with a 15% higher price-to-rent ratio compared to multifamily properties, they're the belle of the ball. With a 5.3% increase in property values over the past year and an enticing 6.5% cap rate, single-family rental properties are the ultimate investment choice for those who want both flair and financial security.

Market Growth

  • The number of single-family rentals in the US increased by 31% between 2007 and 2016
  • The number of single-family rentals in the US increased by 3.6 million between 2006 and 2016
  • Single-family rentals have experienced a 13% increase in demand since the start of the COVID-19 pandemic

Interpretation

The surge in single-family rentals in the US over the past decade speaks volumes about shifting housing trends. It seems like everyone is on the rental bandwagon, with a 31% increase from 2007 to 2016 and a cool 3.6 million added to the tally in just a decade. Now, throw in a pandemic, and suddenly single-family rentals are hotter than a batch of freshly baked cookies. Demand has shot up by 13%, proving that when life gives you lemons, you might as well rent a single-family home to make some lemonade.

Market Share

  • Single-family rentals account for 35% of all US rental housing
  • Single-family rentals make up 42% of the residential rental property market

Interpretation

In a country where individuality is celebrated, it's no surprise that single-family rentals are reigning supreme in the housing market. Representing 35% of all US rental housing and commanding 42% of the residential rental property market, these rentals are like the solo rockstars of the real estate world - offering the allure of privacy and autonomy to tenants. It's a reminder that in a world full of apartments and condos, sometimes it's nice to have a space to call your own, even if it's just a rental.

Market Size

  • The single-family rental market is valued at approximately $4.5 trillion

Interpretation

The single-family rental market stands tall and proud like a massive trillion-dollar skyscraper, casting its shadow over the real estate landscape. With a value of $4.5 trillion, this market dominates the neighborhood, attracting both investors and renters alike with its prime location in the realm of residential opportunities. As homeownership trends continue to shift, the single-family rental market stands as a beacon of flexibility and opportunity, offering a safe haven for those seeking a temporary residence or a long-term investment.

Occupancy

  • Single-family rental occupancy rates average 95%
  • Single-family rental properties have an average vacancy rate of 5%

Interpretation

With single-family rental occupancy rates averaging at an impressive 95%, it seems that "Home Sweet Home" has translated to "Home Sweet Rental." These statistics not only reflect the high demand for single-family rental properties but also the savvy investment opportunities in the rental market. With an average vacancy rate of 5%, it appears that even homes need a little space to breathe before welcoming their next occupants. So, if you're looking to invest in the real estate market, the numbers don't lie - the rental sector might just be the ticket to both financial gain and happy tenants.

Ownership

  • Institutional investors own less than 2% of single-family rental properties
  • 52% of single-family rentals are owned by investors with 1-2 properties

Interpretation

While it may seem like Wall Street moguls dominate the single-family rental market, the reality reveals a more modest landscape: these big players own less than 2% of the properties. Surprisingly, it's the mom-and-pop real estate investors with 1-2 properties who hold a majority stake at 52%. Apparently, when it comes to owning a slice of the American dream, it's the small fish that's swimming ahead of the sharks.

Property Characteristics

  • The average age of a single-family rental home is 37 years
  • Single-family rental homes have an average of 3 bedrooms
  • The average size of a single-family rental home is 1,500 square feet
  • Single-family rental homes have an average lot size of 0.25 acres
  • The average single-family rental property has 1.5 bathrooms
  • The average single-family rental property has 2 parking spaces
  • The average single-family rental property has central air conditioning
  • The average single-family rental property has a washer and dryer
  • The average single-family rental property has a garage

Interpretation

These statistics paint a picture of the quintessential single-family rental property: a 37-year-old home with enough space to accommodate a small family, boasting modern amenities like central air conditioning, a washer and dryer, and even a garage. With 3 bedrooms, 1.5 bathrooms, and 1,500 square feet of living space on a cozy 0.25-acre lot, it's no wonder that this type of property remains a popular choice for renters looking for a comfortable and convenient lifestyle. And let's not forget the coveted 2 parking spaces - a rare gem in today's urban landscape. In the world of single-family rentals, it seems that age truly brings a touch of wisdom and charm.

Property Management

  • Single-family rentals have a 50% lower turnover rate compared to multifamily properties
  • The average annual maintenance cost for a single-family rental is 1% of the property value
  • Single-family rentals have a 33% lower operating expense ratio compared to multifamily properties
  • The average single-family rental property takes 24 days to lease
  • 65% of single-family rental properties are managed by their owners
  • The average single-family rental property takes 45 days to renovate between tenants
  • Single-family rental properties have a 25% lower tenant turnover cost compared to multifamily properties
  • The average single-family rental property requires $2,000 in annual maintenance costs
  • The average single-family rental property takes 60 days to purchase and set up for renting
  • Single-family rental properties have a 40% lower insurance cost compared to multifamily properties
  • Single-family rental properties have experienced a 3.5% increase in property taxes over the past year
  • The average single-family rental property takes 21 days to fill a vacancy
  • Single-family rental properties have a 30% higher average security deposit compared to multifamily properties
  • Single-family rental properties have experienced a 2.5% increase in property management fees over the past year

Interpretation

In the world of real estate, single-family rentals are clearly the tortoises of the property race, outpacing their multifamily hare counterparts with their lower turnover rates, reduced operating expenses, and minimal maintenance costs. With owners taking the reins in managing a majority of these properties, it’s no surprise that single-family rentals boast quicker leasing times and lower tenant turnover costs. However, don't let their steady pace fool you; these properties may take longer to purchase and renovate, but their lower insurance costs and higher security deposits speak volumes about the solid foundation they provide for investors. So, while the market may be experiencing some tax and management fee hikes, single-family rentals are still holding their own and proving that slow but steady wins the rental game.

Rental Rates

  • The average monthly rent for single-family homes in the US is $2,018
  • Phoenix, AZ has the highest year-over-year increase in single-family rent at 13.5%
  • Single-family rental properties have experienced a 7.8% year-over-year increase in rent prices

Interpretation

The real estate market is playing a high-stakes game of rental roulette as the average monthly rent for single-family homes in the US hits $2,018. Phoenix, AZ is leading the pack with a sizzling 13.5% year-over-year spike in rent prices, making the desert heat seem chilly in comparison. Overall, the single-family rental industry is feeling the burn with a 7.8% year-over-year increase, as tenants weigh the cost of convenience against the price of living the American dream. It's a renter's market, but landlords are cashing in on the house party.

Tenant Behavior

  • The average length of stay in a single-family rental is 3 years
  • 70% of single-family renters expect to buy a home in the future
  • 76% of single-family rental tenants have pets
  • Single-family rentals have a 20% higher renewal rate compared to multifamily properties
  • 30% of single-family rental tenants work from home
  • 80% of single-family rental tenants rate their rental experience as satisfactory or very satisfactory
  • 55% of single-family rental tenants have lived in their current rental for 2 years or more
  • 60% of single-family rental tenants prefer properties with outdoor space
  • Single-family rental properties have a 10% higher tenant satisfaction rate compared to multifamily properties
  • 70% of single-family rental tenants are satisfied with their current rental's location
  • 85% of single-family rental tenants pay their rent on time
  • 40% of single-family rental tenants have a pet dog
  • Single-family rental properties have a 20% higher average lease renewal rate compared to multifamily properties
  • 55% of single-family rental tenants are interested in rent-to-own options

Interpretation

It seems that single-family rental properties are more than just temporary housing options; they are becoming preferred nests for a variety of creatures, both two-legged and four-legged. With a higher renewal rate and tenant satisfaction compared to their multifamily counterparts, these rentals are clearly barking up the right tree. The statistics show that these homes are not just places to lay your head, but spaces where tenants can truly make their mark, whether through working from home, enjoying outdoor spaces, or even embarking on a path towards homeownership. It appears that single-family rentals are not just about renting a property, but about creating a home.

Tenant Demographics

  • 44% of single-family rental households have children
  • 35% of single-family rental tenants are millennials
  • The average credit score of a single-family rental tenant is 650
  • 40% of single-family rental tenants have a household income between $50,000 and $100,000
  • The average age of a single-family rental tenant is 39 years old
  • 45% of single-family rental tenants have a college degree
  • 25% of single-family rental tenants have a household income over $100,000
  • 50% of single-family rental tenants have children under 18 living with them

Interpretation

In a quirky twist of demographic trends, it seems that single-family rental properties have become the new hotspots for the modern family dynamic, with nearly half of tenants juggling parenting duties within those cozy walls. Millennials, known for their preference for flexibility and experiences over homeownership, are also making their mark in the rental market, comprising over a third of single-family rental tenants. The average credit score of 650 may raise some eyebrows, but it shows that responsible borrowing habits are not exclusive to homeowners. With a significant percentage falling within the $50,000 to $100,000 income range, it appears that these tenants are striking a balance between financial stability and the freedom of renting. Education seems to be a key feature as well, as nearly half hold a college degree, showcasing a well-educated tenant base. And while the age average of 39 may not be surprising given the financial constraints faced by many millennials, the fact that a quarter of tenants boast a household income over $100,000 speaks to a diverse and dynamic rental community. It's a colorful portrait of the modern American renter, proving that the concept of home is not defined by ownership but by the moments and memories created within its walls.

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