Single-family rentals are the fastest growing segment of the U.S. housing market—and they're not going away anytime soon, a new study suggests.
A new study from UC Berkeley's Terner Center for Housing Innovation explores the drivers behind the rise of single-family home rentals, and makes policy recommendations to aid this fast-growing group of tenants.
According to the paper, both market conditions and lifestyle preferences are funneling renters into houses rather than apartment buildings. "A boom in single-family home construction in the early 2000s followed by the recession and foreclosure crisis positioned many families with a need to rent, and many formerly-owned homes with a need for occupants," the authors' summary reads. At the same time, "single-family rental homes also serve as a good option for families seeking the amenities of a detached home in a suburban neighborhood, but without the commitment or barriers associated with ownership."
Still, the majority of renters in single-family houses hope to become homeowners. And they face the same affordability challenges as other renters nationwide, as well as challenges unique to single-family properties. The report suggests renter's tax credits and lease-to-own models could alleviate some of these difficulties.
FULL STORY: Renting the Dream: The Rise of Single-Family Rentals
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