For the second year in a row, HomeUnion Research Services has put together a comprehensive report on the state of the U.S. single-family rental (SFR) housing market. The 2017 National Single-Family Rental Research Report analyzes supply/demand, investment and capital market conditions that will impact the investment housing sector and influence decisions investors will make throughout the year. We also rank 28 major metro areas based on a number of factors, including opportunity, demand, cap rates, and upside potential. As a result, real estate investors can gain a broad understanding of the markets will satisfy their financial objectives in 2017.
Specifically, our Research Services division does a deep dive into the micro and macroeconomic factors affecting each region, including employment drivers, household formation, vacancy rates construction, home prices and rent growth and capital markets conditions. For example, Cleveland ranked as the highest-yielding market this year, with the highest cap rate in the nation, low investment home prices and rent growth of 3.8 percent. On the other side of the country, Seattle earned top billing as the market in highest demand among renters, edging out nearby Oakland in Northern California. Both metros feature strong employment prospects and high occupancy rates. With Seattle leading in both categories, featuring a 3.3 percent or 56,000 position increase in jobs and an 80 basis point drop in vacancy, this Washington State tech hub would likely appeal to well-heeled investors interested in appreciation. In contrast, Cleveland retains its status as a strong market for investors interested in immediate cash flow, while Oakland remains heated for any but the wealthiest investors to consider.
The 2017 National Single-Family Rental Research Report will serve as an invaluable resource for savvy investors looking to diversify their investment portfolios or to increase their real estate holdings this year. To access the full report, download here.