The growth of secondary markets and single-family rentals are explored in this week’s industry trends. First, NREI examines how as rents continue to rise, investors are gaining interest in small properties in smaller markets. Also from NREI, we have a piece that tracks the increasing number of single-family rentals across the U.S. by market and risk-return. Pensions & Investments asserts that more millennials are being drawn to secondary markets as they seek a lower cost of living, shorter commutes and a better work-life balance. Next, MBA reports that multifamily properties saw the highest volume of mortgage bankers’ origination volume. We close things off with a piece from Multifamily Executive that provides a breakdown of the fastest growing cities for single-family rentals.


Prices Keep Rising for Apartment Properties, Forcing Investors into Smaller Markets
NREI – April 10
“Investors keep looking for apartment buildings to buy at good prices. The search is leading them to smaller properties in smaller markets.”

Top SFR Growth Markets for 2018

NREI – April 11
“Analyzing single family rental returns in 449 U.S. counties with a population of at least 100,000, ATTOM Data Solutions has ranked the top growth markets for SFR rentals.”

The Demographics Driving Real Estate Investments In Non-Gateway Cities

Pensions & Investments – April 10
“Data shows the population growth of millennials in non-gateway (secondary) markets has exceeded gateway markets with the trend expected to continue through 2022.”

Mortgage Bankers Close Record $530B in 2017 Commercial/Multifamily Originations
Mortgage Bankers Association – April 12
“2017 was a very strong year, driven by solid property fundamentals, rising property values, low interest rates and a ready supply of mortgage capital all contributing to extraordinarily attractive finance markets.”

Single-Family Rentals Outpace Apartment Rentals in 22 of 30 Largest US Cities
Multifamily Executive – April 11
“This rise in linear living, caused by the inability to attain homeownership for many of today’s residents after the housing market crash, has been more drastic in some markets than others.”