Year-End Financial Tips for SFR Investors

We've got a few more real estate statistics to remind you of the staying power of real estate investing and why quality SFRs and property managers are premium to renters.

1. 42% of renter households rent single-family homes
While the majority of American households own a home, an increasing portion rent. In fact, the largest share of renter households rent SFRs, with only 36% of households living in multifamily housing of five units or more. Investors, take note! SFRs are the future.

2. Renter households are very likely to encounter rental scams
Unfortunately, renter households are increasingly likely to encounter fraud when they try to secure rental housing. Every investor and property manager knows that there’s a great deal of cynicism and mistrust towards the system, if not the landlords themselves. Scams are a big reason. This means that for investors, building a trustworthy reputation is paramount to long-term success.

3. Only 36.7% of single-family homes sold above the list price in August 2022
The share of homes selling above the list price has dropped. While home prices aren’t necessarily decreasing, competition has eased to the point where bidding wars are all but gone and price reductions are more common. We can thank mortgage interest rates upwards of 6% for that.

4. Investors are buying more SFRs than ever.
Pew Research reports that real estate investors of all sizes bought a quarter of homes on the market in 2021. This fact comes with some complicated implications, but one thing is crystal clear: more and more investors and institutions are recognizing the resilience and potential of SFRs, and they’re building their portfolios accordingly.