90 90
INVESTMENT PROPERTY PRESERVATION TECH
SFR
INVESTMENT
POISED FOR
GROWTH
Single-family rental (SFR) investment is
poised to be an investment portfolio stand out,
according to SVN | SFRhub Advisors. e
company recorded a 650% uptick in investment
activity since mid-March 2020 for SFR/
BFR portfolios on their technology platform,
SFRhub.com, averaging 10,000+ listed homes,
Yahoo Finance reports.
"Investors have reaped financial advantages
of a 10-year bullish marketplace, notably the
past few years with SFR portfolios, and the
newer BFR market," said Jeff Cline, Executive
Director and Principal of SVN | SFRhub
Advisors. "For the first time in U.S. history,
rental household growth outpaced U.S.
homeownership."
He added "Looking ahead, consumer
economic, lifestyle, and work-at-home
popularity indicate global investors' near and
long-term outlook for capital growth and
income opportunities in single-family detached
homes for rent is better than it's been for
several years."
According to SVN | SFRhub, demand
from millennials and older adults/retirees
has destigmatized renting and touted
SFRs' benefits like increased space, yards,
and amenities representative of living in a
single-family detached home. Skyrocketing
unemployment, job uncertainty, and hefty
student debt loans imply the SFR/BFR market
should remain strong among millennials as
home ownership moves farther out in time and
remote working becomes more popular.
Cline notes, "SFR/BFR investors' main
concerns are rent revenue and occupancy. In
the short-term, unemployment may impact
rent rather than occupancy issues. As the
economy recovers, demand for SFR/BFR will
be a favorite among alternative investors with
capital on the sidelines seeking refuge and stock
market diversification for growth and income."
U.S homebuilders may turn to REITs,
private equity firms and individual investors to
purchase completed or near completed single-
family communities for rental investment if the
new home buyer market continues to retract.
"For the first time, we now have several
private capital group clients with tens of
billions of dollars to specifically invest in the
BFR space," said Michael Finch, EVP of SVN
| SFRhub Advisors.
Journal
