Single-Family Rental REIT Update – January 2025
January 15, 2025
The single-family rental (SFR) sector has showcased resilience and sustained growth. Despite broader economic challenges, such as rising interest rates, the sector thrived on strong demand, high occupancy rates, and ongoing investor interest. Public REITs like AMH and INVH reported strong financial performance and expanded their portfolios through strategic acquisitions.
The entry of major players like AvalonBay into the Build-to-Rent (BTR) space, along with increased allocations from NCREIF funds, underscores the sector’s long-term potential and is expected to drive further competition and innovation. While some softening in the rental market is apparent, the SFR sector remains well-positioned for sustained success.
Single-Family Rental Sector in 2025
Looking ahead to 2025, the SFR sector will face both opportunities and challenges. Factors such as population growth, constrained housing supply, and shifting renter preferences are expected to bolster demand for single-family rentals.
However, rising interest rates and potential economic headwinds may impact affordability and investor activity. Investors and operators who can navigate these market dynamics and effectively manage their portfolios — or partner with management platforms like INVH — will be best equipped to succeed in the evolving SFR landscape.
Single-Family Rental Sector January KPIs
Performance
1. 4.6% Average Revenue
2. 4.00% Average Expenses
3. 4.90% Average NOI
4. 96.8% Average Occupancy
5. 4.4% Blended Average Rent Growth
Guidance
1. 4.63% Average Revenue
2. 4.38% Average Expenses
3. 4.75% Average NOI
For more information on the single-family sector, please reach out to:

Principal
1808 Wedemeyer Street
Suite 312
San Francisco, CA 94129
(813) 215-7075
koxtal@capright.com