Attracting Investment: Single family rentals appear poised to become a significant class of long-term investment asset according to a new report by financial services firm Keefe, Bruyette, and Woods (KBW).
The general increase in the rental market brought on by the recession, coupled with elements of recovery such as low inventory and strong re-sales suggest that broad institutional investment in single-family rental properties could emerge as an appealing market.“While the single-family rental market has historically been fragmented, institutional interest has increased sharply,” said Jade Rahmani, the report’s author and VP of KBW. “The large foreclosure inventory and drop in home prices have created the possibility for institutions to generate attractive cash returns of 5-7 percent and total returns including home price appreciation of over 15 percent annually.” Read more..
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