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The single-family rental (SFR) market accounts for roughly half of the total U.S. rental market, providing housing to 25 million people, according to a new report from Freddie Mac.
The “Single Family Rental: An Evolving Market” report values the SFR market at more than $4 trillion. However, the vast majority of SFRs are owned and operated by individuals or very small investors; large-scale investors account for one percent of SFR ownership. Freddie Mac’s report observed that a major drawback for investors is the limited secondary market opportunities in this market, coupled with the lack of uniform set of terms and credit standards for loans on SFRs.
“The Single-Family rental market is an important segment of the housing market and the data reveal it to be an affordable housing option for many American families,” said Steve Guggenmos, Vice President of Multifamily Research & Modeling. “Much of the SFR market is primarily driven by small investors, and there is not a uniform set of terms and credit standards for loans on SFRs. Freddie Mac’s pilot program in this space sought to demonstrate how secondary market infrastructure focused on SFRs might benefit the marketplace.”
