As sellers take the upper hand in a competitive housing market, landlords are also set to end the year on a high note thanks to a steady increase in new lease effective rents during the final months of 2021. The John Burns Real Estate Consulting Single-Family Rent Index (BSFRI) shows double-digit rent growth in metro areas like Phoenix, Las Vegas, Charlotte, and Atlanta. Publicly traded single-family rental (SFR) real estate investment trusts (REITs) also tracked a record-high 18% same-home new lease rent growth for the third quarter of 2021.
New lease effective rents continue to rise, with several popular in-migration markets producing double-digit rent growth over the last year, according to our Burns Single-Family Rent Index™ (BSFRI). The BSFRI covers 99 markets and includes homes that are owned by small investors, which are the vast majority of the market.
The publicly traded single-family rental (SFR) REITs reported even higher rent growth in 3Q21. In aggregate the SFR REITs reported in 3Q21:
- 98% same-home occupancy
- Record-high 18% same-home new lease rent growth
- Virtually no change in the ratio of tenant/applicant incomes, which indicate strong wage growth
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