In the ever-evolving landscape of real estate investment, landlords are finding cause for optimism as rising rents outpace home prices in numerous markets across the country. According to ATTOM’s Q1 2024 Single-Family Rental Market Report, this trend is driving up investment returns and presenting lucrative opportunities for real estate investors seeking strategic deals in today’s dynamic market conditions.
The report highlights a notable uptick in rental demand, fueled by a combination of factors including historically limited housing supply and a deceleration in home price appreciation. Between 2023 and 2024, median three-bedroom rents surpassed median single-family home prices in 63% of the markets analyzed, leading to incremental increases in rental yields.
Anticipated average annual gross rental yields for three-bedroom properties are projected to reach 7.55% in 2024, representing a slight uptick from the previous year’s figures. This marks the second consecutive year of rising projections following a period of declines, signaling a resurgence in rental market performance.
Noteworthy growth in rental returns is observed across most regions, with potential annual gross rental yields for three-bedroom properties increasing in 216 out of 341 counties analyzed. Leading this surge are markets such as Taylor County (Abilene), TX, Jefferson County (Birmingham), AL, and Richmond County (Augusta), GA, where yields have seen significant gains.
Furthermore, ATTOM’s report identifies the top 28 single-family rental growth markets, where average wages have risen, and potential rental yields surpass 10%. Notable inclusions on this list are Chicago, Detroit, and Cleveland, underscoring the breadth of opportunities available to investors across diverse markets.
Below are the top counties experiencing the highest rental growth:
Source: ATTOM, Top 10 Counties for Buying Single Family Rentals in 2024
For real estate investors seeking strategic investment opportunities, ATTOM’s latest findings offer invaluable insights into the evolving dynamics of the single-family rental market. With rising rental yields and promising growth prospects, these trends provide a roadmap for navigating the current market landscape and unlocking lucrative investment opportunities.