Single-Family Rental REITs: Meet Your New Landlord
Riding the historic surge in housing rents, Single Family Rental REITs are one of the best performing property sectors since the start of the pandemic, gaining another 40% this year.
SFR REITs are one of the great success stories of the Modern REIT Era, becoming a "core" institutional asset class and quieting the critics that questioned their operating efficiency potential.
The combination of historically low housing supply and strong demographic-driven demand - with added pandemic-driven tailwinds - has sent single-family rents soaring at the fastest rate on record.
Property Technology - or "PropTech" - continues to be a key catalyst. The growth trajectory remains promising as the "institutionalization" of the single-family housing market remains in the early innings.
SFR REITs appear attractively valued given their growth trajectory and exhibit appealing risk profiles and investment characteristics, providing a strong inflation hedge and relatively muted sensitivities to interest rates and economic growth.