Ep. 27 : The Changing Dynamic of the Housing Market - John Burns - Founder & CEO of JBREC
The Distribution by Juniper Square
Emergence and Growth of the Single-Family Rental Housing Market
The single-family rental housing market emerged around 2012 and witnessed significant growth over the last decade with a focus on buying below replacement costs. This led to a realization that buying at replacement costs would require a strategic pause. The market observed a shift towards building rental homes to meet the demand from over 12 million people seeking single-family rentals. Despite challenges from rising interest rates, strong consumer demand continues. Contrary to popular belief, institutional ownership of housing is not a widespread issue, with only about 6% of detached homes being owned by large companies. Although specific zip codes and markets may show higher institutional ownership percentages, the national scenario indicates a balanced market where institutions are now selling more homes than they are acquiring.
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