Why invest in SFR?
SFR properties are associated with inherent tax protections because they are tangible assets. While stocks or other investment types may sustain immediate gains and losses, real estate offers protection against the same types of volatility.
Yardi Matrix data shows that the average expense per SFR unit rose to $9,149 in September 2023, marking a 12.2 percent year-over-year increase.
Real estate values tend to increase over time, and with a good investment, you can turn a profit when it's time to sell. Rents also tend to rise over time, which can lead to higher cash flow. Median Sales Price of Houses Sold for the United States.
Investing in SFR real estate is popular among both retail and institutional investors. In general, these properties make money from their net operating income, which is the rent minus the operating expenses. The idea is to buy a home, rent it out, collect income, and then sell the property later down the line.
SFR stands for single family residential home, one of the foundational assets in a portfolio for real estate investors looking to earn stable returns and to build equity over time. (
Most estimates show that SFRs account for 15-16 million units. This represents close to 15% of all occupied housing in the United States.
The number of home sales in the United States peaked in 2021 at almost seven million after steadily rising since 2018. Nevertheless, the market contracted in 2022, with transaction volumes estimated to fall below 4.8 million in 2023.
The abbreviation SFR stands for single family residence. SFRs can include the following housing types: Detached home. Townhome.
Short Sales and Foreclosure Resource (SFR®)
Spotted Fever Rickettsioses (SFR) are a group of tick-borne diseases caused by bacteria from the Rickettsia species, including Rickettsia rickettsii and Rickettsia parkeri.
What are the SFR REIT companies?
| Ticker Symbol | Company Name | Market Cap ($B) |
|---|---|---|
| INVH | Invitation Homes | 19.79 |
| AMH | American Homes | 12.32 |
| TCN | Tricon Residential | 3.02 |
| BHM | Bluerock Homes | 0.05 |
Often, SFR investors employ a “scattered site” acquisition strategy where the properties owned are not contiguous. On the other hand, BFR stands for build for rent, which refers to a type of property that is specifically designed and constructed to be rented out to tenants.
Key Differences
REITs invest directly in real estate and own, operate, or finance income-producing properties. Real estate funds typically invest in REITs and real estate-related stocks. REITs trade on major exchanges the same way stocks that do, and their prices fluctuate throughout the trading session.
As mentioned above, stocks generally perform better than real estate, with the S&P 500 providing an 8% return over the last 30 years compared with a 5.4% return in the housing market. Still, real estate investors could see additional rental income and tax benefits, which push their earnings higher.
Historically, stocks have offered better returns than real estate investments. "Stocks have returned, on average, about 8% to 12% per year while real estate has generated returns of 2% to 4% per year," says Peter Earle, an economist at the American Institute for Economic Research.
2023 was a demoralizing year for many aspiring home shoppers. Mortgage rates and residential real estate prices surged, and average monthly mortgage payments hit record levels, creating a perfect storm of home unaffordability. However, 2024 could be a better year to purchase a home—at least for some.
Invitation Homes Inc. is the largest company in the U.S. single-family home rental market. The company is known for its large portfolio of high-quality, updated homes tailored to meet the evolving lifestyle needs of its residents.
- Denver – 74.8.
- Raleigh, North Carolina – 73.7.
- Virginia Beach, Virginia – 73.2.
- Durham, North Carolina – 72.8.
- Charlotte, North Carolina – 72.0.
The largest institutional single-family rental (SFR) operator in the country, Invitation Homes, is in the hot seat over its alleged failure to comply with building-permit requirements for rental properties it owns in California.
Existing Home Sales in the United States averaged 4064.49 Thousand from 1968 until 2023, reaching an all time high of 7250.00 Thousand in September of 2005 and a record low of 1370.00 Thousand in March of 1970.
What is the average home price in the US in 2023?
Median Home Price in the US in 2023
The U.S. median home price was $412,000 in September 2023, according to Redfin. That's an increase of 2% over last year even though there were more than 300,000 fewer homes on the market.
Key findings. The median home sales price in the United States is $417,700 as of the fourth quarter of 2023. That's down 4% from the third quarter of 2023, when the median home sales price was $435,400.
Single-family residence (SFR) is a term used in real estate to describe a home that's not attached to another. SFRs are often detached houses and can be condos, townhouses, or mobile homes. Single-family residences are often used as permanent residences and may have one or more bedrooms, garages, and yards.
INTENT: The “SFR” district is intended to provide for the development of single-family dwelling units in community areas. PERMITTED USES. Single-family dwelling.
A property listed as contingent means the seller has accepted an offer, but they've chosen to keep the listing active in case certain contingencies aren't met by the prospective buyer. If a property is pending, the provisions on a contingent property were successfully met and the sale is being processed.
