Single-Family Rental Market Continues to Grow, Led by Small Investors

Home prices hit a record in June, as interest rates remaining persistently high – making purchasing unaffordable for many potential single-family home buyers. Those dynamics are transforming the housing landscape, as deep-pocketed investors step into the gap, according to a recent SitusAMC Insights analysis. 

So far in 2025, investors who bought homes to flip or rent out this year made up about 30% of purchases of existing and newly built single-family homes, according to published reports. That’s the largest percentage on record. 

“Increasingly, we are seeing a gray zone where commercial and residential real estate are coming together in the single-family rental market,” said Peter Muoio, PhD, Senior Director, SitusAMC Insights. 

Investors accounted for 13% of home sales in 2024, up from 12.7% in 2023, according to a Realtor.com report. They include large private equity firms, such as Pretium, Amherst Residential, Blackstone and J.P. Morgan; and real estate investment trusts (REITs) such as Invitation Homes, American Homes 4 Rent, Tricon American Homes, and Avalon Bay.  

But these institutions only comprise about 5% of single-family rental investors. The vast majority -- 82% -- are mom-and-pop landlords with fewer than 10 properties. Smaller investors that own between 10 and 99 properties make up 13%. Investors with 100 properties or fewer represented a quarter of investor single-family purchases made so far this year.  

Single-family rentals now comprise 30% of the total rental market, accounting for about 14 million households, according to the Census Bureau. The most active regions are in the Sunbelt. A SitusAMC Insights analysis found Atlanta, Jacksonville and Charlotte lead the nation in the number of single-family rentals, at 25%, 21% and 18% respective market share.    

"We see a high correlation between multifamily and single-family rent growth,” Muoio said. 

Built-for-rent (BFR) homes represent a growing portion of this market. BFR single-family housing starts grew to 90,000 units in 2024, about 9% of single-family starts, up from 60,000 units or 5% in 2021, according to the Census Bureau. These starts are concentrated in Texas, Arizona and Florida. 

 The affordability crisis is primary driver of single-family rental demand among U.S. consumers. A 2025 Gallup survey found the vast majority rented for economic reasons. Just 11% said renting was more convenient and involved less maintenance; 2% rented because their jobs required frequent relocation; and 1% said they were older and downsizing.  

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