Rise of Single-Family Rentals
By Carissa Kristoff
Realtor, Berkshire Hathaway HomeServices Select Properties
In today’s housing market, affordability has become a growing concern for many families. With high home buying costs putting ownership out of reach for some, a significant shift is taking place in the form of increased demand for single-family rentals (SFRs). These homes offer a balance between affordability and amenities, making them a popular choice for families seeking a quality living experience without the financial commitment of buying.
As a residential real estate professional with nearly two decades of experience, I’ve observed this trend firsthand. Families are rethinking their priorities, and the appeal of single-family rentals is undeniable. Here’s why:
The Appeal of Single-Family Rentals
- Affordable Living Without Sacrificing Space: Single-family rentals provide the best of both worlds: affordability and ample living space. For families who need multiple bedrooms, a private backyard, or even a garage, SFRs offer these perks at a fraction of the cost of homeownership. This is especially appealing in competitive markets where the median home price has skyrocketed.
- Flexibility Without Long-Term Commitment: Renting offers flexibility, which is invaluable in an uncertain economy. Families can enjoy the benefits of living in a suburban neighborhood without being tied to a 30-year mortgage. This freedom also allows renters to test-drive a community before committing to a permanent residence.
- Access to Amenities: Many single-family rentals are part of master-planned communities, offering access to shared amenities like pools, playgrounds, and walking trails. For families, these extras can enhance their quality of life without stretching their budget.
- Ease of Maintenance: Renting shifts the burden of major maintenance costs and responsibilities to the property owner. This is especially appealing for families who don’t want the added stress of unexpected repairs or upkeep.
High Home Prices Drive Demand
The rising cost of homeownership is one of the primary drivers of this trend. According to recent data, mortgage rates have reached levels not seen in decades, and the median home price continues to rise year over year. This has created a barrier for many potential buyers, particularly first-time homeowners.
In contrast, renting a single-family home allows families to live in desirable neighborhoods without the need for a large down payment or the pressure of securing a mortgage. For families saving for future homeownership or uncertain about their long-term plans, SFRs are an ideal solution.
Builders and Investors Step In
Recognizing this demand, builders and investors are increasingly focusing on developing single-family rental communities. These neighborhoods cater specifically to renters, combining the comforts of single-family living with the convenience of professional property management. As a result, families have more options than ever before when it comes to renting a home that fits their needs.
What’s Next for the Market?
As we look ahead, it’s clear that single-family rentals are here to stay. For families, they represent an affordable, flexible, and attractive alternative to homeownership. For investors and developers, the trend offers a lucrative opportunity to meet an evolving market demand.
If you’re considering a move or want to explore single-family rental options, I’m here to help. With 19 years in residential real estate, I’ve guided countless families through the process of finding the perfect home—whether buying, selling, or leasing. Let’s navigate this changing market together and find the solution that’s right for you.
About Carissa Kristoff
With 19 years in residential real estate, Carissa Kristoff has built a reputation for providing clarity and confidence throughout every stage of buying, selling, or leasing a home. As part of the Berkshire Hathaway HomeServices Select Properties team, she collaborates with seasoned brokers, agents, and administrators to secure optimal outcomes for her clients. Carissa’s work ethic is matched by her commitment to enjoying life: she’s an avid sailor, snow skier, and certified yoga instructor. She also brings a hands-on approach to homeownership, thanks to her background running a residential cleaning and management company, where she honed her DIY skills in gardening, painting, and decorating. Whether guiding a first-time homebuyer or a seasoned investor, Carissa leverages her well-rounded experience to simplify the process and deliver top results.
