This week’s roundup highlights year-end single-family rental (SFR) trends, population growth’s impact on cities and the cost of renting across the U.S. First, Arbor’s Chatter features its “Q4 2019 Single-Family Rental Investment Trends Report,” which reflects on the growth and maturation of the SFR market in the post-recession period. Next, Trepp discusses the key factors contributing to the commercial real estate industry’s continued growth, despite last year’s concerns of a slowdown. Another Chatter blog offers an infographic displaying the small multifamily sector’s performance to end 2019, which was characterized by low interest rates and record lending volume. Then, Harvard’s Joint Center for Housing Studies presents research on population change to explain the seemingly conflicting trend of major U.S. cities still growing while losing people to migration. Finally, HousingWire examines why the cost of renting continues to rise, citing drivers such as a lack of affordable housing, and increased land and construction labor costs. 

Q4 2019 Single-Family Rental Investment Trends Report

Arbor Chatter – February 20

“Over the past decade, the market for single-family rentals (SFRs) has evolved. In a few years, we will likely look back and consider 2019 to be the sector’s inflection point, where it transitioned from a niche, alternative asset class to a mainstream property type.”

Commercial Real Estate is Not Done Growing (Quite) Yet

Trepp – February 20

“Instead of upward pressure on cap rates and downward pressure on property values, we enter 2020 with the potential of downward pressure on cap rates and (further) upward pressure on property values.”

Small Multifamily Investment Snapshot — Q4 2019

Arbor Chatter – February 18

“Annualized small multifamily lending volume reached $59.2 billion in fourth-quarter 2019, the highest level of activity in Chandan Economics’ post-crisis estimates. Here’s a quick look at the quarter’s small multifamily investment and finance benchmarks.”

Losing Residents but Still Growing: How Migration and Population Change Affect Cities

Harvard JCHS – February 20

“Nearly one-quarter of large central metro counties (16 counties) lost migrants overall but still grew in 2018 due to their natural population increases.”

Cost of Renting Continues to Steadily Rise

HousingWire – February 19

“Rents are likely to maintain an upward streak throughout 2020, as the number of renters continues to rise in the U.S.”