Single-Family Rental REIT Update – October 2025

October 27, 2025

A Bridge Between Affordability and Opportunity – Single Family Rental REIT Update October 2025

The single-family rental (SFR) sector continues to stand out as one of the most resilient corners of commercial real estate. Through mid-2025, leading public REITs have demonstrated disciplined management, steady rent growth, and sustained investor confidence, amid higher capital costs and selective acquisition strategies.

Resilient Performance in a Shifting Market

Capright’s Single-Family Rental REIT Update – October 2025 highlights consistent YoY gains from top REITs including Invitation Homes (INVH) and American Homes 4 Rent (AMH).

• INVH maintained stable guidance after posting 2.5% same-store NOI growth.
• AMH reported stronger results with 4.1% same-store NOI growth and raised its full-year outlook.
• Average occupancy levels remained near 97%, signaling durable renter demand and long tenant tenure, now averaging over 39 months per household.

Acquisition & Development Discipline

While transaction volumes remain muted, activity is picking up through targeted builder partnerships and selective acquisitions in high-growth Sun Belt markets.

• INVH acquired 1,040 homes for $350M in 2Q25, focusing on newly built properties with a target investment yield around 6%.
• AMH continues to expand its development platform, delivering 636 new homes in the quarter and maintaining mid-5% to 6% yield expectations.

This disciplined, builder-focused strategy underscores how REITs are balancing scale with operational efficiency as they re-enter a complex capital environment.

Private Capital and Institutional Expansion

Institutional appetite for SFRs continues to deepen. NCREIF funds now collectively own $7.5B in SFR assets, up from $5.4B a year earlier. Still, the sector accounts for just 2.7% of total residential exposure within NCREIF portfolios, signaling substantial runway for further institutional allocation.

Private equity players, such as Pretium Partners with over 90,000 homes, are also expanding aggressively, intensifying competition for both assets and development opportunities.

Rent Growth Regains Momentum

After a brief cooling period, blended rent growth rebounded to 4.2% in 2Q25, with the Midwest leading gains and renewal rent increases serving as the primary growth driver. Tenant turnover remains historically low at roughly 20%, reflecting the sector’s stability and appeal to long-term residents.

Build-to-Rent: Renting the American Dream

A defining trend is the surge in build-to-rent (BTR), purpose-built single-family communities that offer “house-style” rentals at a lower cost than ownership. On average, BTR homes are $1,000–$1,200 cheaper per month to rent than to buy. With 110,000 new BTR units under construction, the sector is evolving from niche to necessity.

BTR serves as a vital bridge for family formation, particularly for renters priced out of ownership but seeking suburban quality of life. As the report notes, renting a house is no longer “settling”, it’s a redefinition of aspiration in a market where affordability remains elusive.

The Bigger Picture

The report concludes that structural housing shortages, affordability pressures, and migration trends will continue to support long-term SFR demand. As REITs remain selective and efficient, and as BTR platforms scale, the sector stands poised to play a dual role, delivering attractive yields for investors while addressing critical gaps in U.S. housing infrastructure.

📬 Let’s Talk

At Capright, we are uniquely positioned to support institutional investors, operators, and developers navigating this evolving environment. As an independent valuation and advisory firm, we provide clarity, accuracy, and confidence, especially where the stakes are highest.

If you’d like to discuss the findings or need support with your Single-Family Rental valuation or strategy, reach out to: