DS News

52 KEEPING UP WITH DEMAND DS News speaks to industry experts about how the single-family rental sector is offering savvy investors the chance to leverage technology and trends, such as increased migration, to find opportunities in unexpected places. Last month, the Five Star Institute once again hosted its semi-annual Single-Family Rental Summit at the Statler Hotel in Dallas, Texas. With ongoing housing issues such as soaring home prices, lagging housing inventory, and widespread supply-chain issues driving many potential homebuyers to continue renting, or to continue renting longer, the single-family rental (SFR) market is flush. With recent SF rent price increases reaching near 15-year highs, increasing nearly 13% year over year in January 2022, single-family homes are a top-tier investment opportunity, as well as a housing alternative more Americans rely on as the competition within the homebuying landscape remains fierce. With the Single-Family Rental Summit bringing together investors ranging from mom-and-pop to large institutions, DS News' team was on hand to speak to some of the subject matter experts who were in the crowds and on panels for the event. The event kicked off with a keynote speech from Jeffrey Tesch, CEO of the SFR Summit's Host Sponsor, RCN Capital. Citing data from the U.S. Census Bureau, Oxford Economics, and Green Street, Tesch noted that, of the 125 million households in the United States, approximately 35 million are SFR rentals, representing around 16 million units. Looking ahead over the next five years, Tesch forecast housing demand to increase by approximately 7.5 million additional housing units. Within that five-year period, he predicted that approximately 810,000 new households would sign SFR leases— approximately 1.5 times higher than the number of predicted new apartment renters. Of course, every opportunity must also overcome its own headwinds, and Tesch's keynote laid out some of the challenges SFR currently faces, ranging from rising interest rates and inflation to persistent inventory shortages exacerbated by supply-chain and labor issues. Noting recent ATTOM data, Tesch also noted that homeownership remains more affordable than renting in nearly 60% of U.S. markets. However, Tesch spotlighted increases in new home construction in the early months of 2022 as a positive sign that some relief could be on the horizon. Tesch's keynote also pointed out increasing interest in the build-for-rent model as another way the industry is pivoting to both address current challenges and unlock further opportunities. As the day gave way to a packed lineup of panels featuring industry subject matter experts, DS News spoke with many of those presenting. is month, we are excited to bring you a selection of insights from those conversations. Cover Story By: David Wharton

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