Why Small Investors Will OWN the Single-Family Rental Market in 2024

Episode #169

For years, we’ve been hearing about how the single-family rental market is being bought up by hedge funds, iBuyers, and institutional investors. For the average investor, it seems like the corporate landlords are getting an unfair advantage—they have better data, better financing, full-time staff, and deep pockets to buy whatever and wherever they want. But a new single-family rental survey shows that the big players aren’t the ones controlling the market—it’s the little guys.

To walk us through this massive, single-family rental survey, is Rick Palacios Jr., Director of Research at John Burns Research and Consulting. Rick’s team accomplished the seemingly impossible task of measuring activity for 270,000 single-family rental homes to see how landlords are faring in 2023 and what their plans are for 2024. And while this survey focuses on REITs (real estate investment trusts), private groups, and other larger-type buyers, it provides invaluable insights for the small-time landlord.

Rick will walk us through rent growth (and decline) from the past year, where he believes rents will be in 2024, whether or not expenses could continue to rise, how high mortgage rates are affecting buyers, and why institutional investors are struggling in this market while mom-and-pops are buying!

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00:07 Intro

03:13 HUGE Single-Family Rental Survey

07:03 Rents Begin to "Normalize"

13:39 Expenses Explode

19:38 Rates Rise, Small Investors Take CONTROL

25:37 2024 Predictions

34:29 Will Multifamily Hurt Single-Family Rents?

36:57 Grab the Survey!

37:41 Look for "Little" Deals!

[Michaelbesomeone]

I agree, I’ve seen bigger equity captures and less competition in my markets. However the cash flow isn’t as strong as it was

[realestateguru]

Pacific Northwest mixed with John Burns experts, HEAVEN. Smile

[FIRE_DrNinjaTurtle]

I am going to deploy my money into a single family home instead of investing in multi-family syndications in 2024. I have too high a percentage of my net worth in Syndications.

[moderateradical]

Seems like the kind of analyst who wants to call someone who owns 300 houses a "mom and pop investor"