The last few years have brought sharp shifts in the rental market, with multifamily rents cooling in high-growth metros like Austin, Denver, and Phoenix.  However, in many of these same markets, single-family rents have held up better than their multifamily counterparts, creating a steady performance gap between the two sectors. National single-family rents rose +3.8% between May 2024 and May 2025, while multifamily rents rose +2.6%, according to LendingOne’s analysis of Zillow rental data. It’s a trend LendingOne continues to track closely, helping investors navigate where resilience—and opportunity—still exist. To see which markets are seeing single-family rental growth outpace multifamily rental growth the most in 2025, LendingOne analyzed year-over-year rental growth data from the Zillow Observed Rent Index (ZORI)* for the largest 100 U.S. metros. Single Family vs Multifamily Year-Over-Year Rental Growth Topline Findings Among the 100 largest markets, year-over-year single-family rental growth is outpacing multifamily rental growth in 75 markets.  In Sunbelt markets like Phoenix, Austin, and Denver, multifamily rents are falling, while single-family rents are holding up better—despite high overall supply. The strongest rental markets overall remain in the Northeast and Midwest, where both single-family and multifamily supply remains constrained and demand continues to be strong. Why is there Rental Growth Divergence? While national rents are still rising, growth has decelerated significantly since the peak of the Pandemic Housing Boom, when year-over-year single-family rent growth topped +13.4% in March 2022 and year-over-year multifamily rent growth peaked at +16.3% in February 2022. In the past year, markets like Denver, Charlotte, and Colorado Springs have seen single-family rents hold firm—or even accelerate—while multifamily rents have flattened or declined. So why is the multifamily market now seeing more softness than the single-family rental market? As of July 2025, the multifamily market is still absorbing a massive wave of new supply. According to RealPage, over 439,000 units were completed in 2023, followed by a record 671,953 units in 2024—the highest annual total since 1974. While construction is slowing—RealPage projects about 431,000 completions in 2025—many of those units are still coming online. Therefore, the divergence in single-family rental and multifamily rental growth is particularly pronounced across the Sunbelt, where multifamily developers have added supply at a rapid pace—but single-family rental demand remains steady. Difference in year-over-year single-family and multifamily rental growth Year-Over-Year Multifamily Rental Growth The softness in multifamily isn’t universal. Some markets with limited new construction and tighter housing stock are still seeing strong multifamily rent growth. In these metros, both single-family and multifamily rents are rising briskly, suggesting localized supply constraints and resilient demand across the board. Many of these strong rental markets are concentrated in the Northeast. Among the largest 100 metros, these are the top 5 with the biggest year-over-year multifamily rental gains: Augusta, GA: +7.2% Syracuse, NY: +7.2% Worcester, MA: +6.6% Bridgeport, CT: +6.4% Providence, RI: +6.1% Year-Over-Year Single Family Rental Growth The single-family rental market is not experiencing the same flood of supply as the multifamily market has. As a result, single-family rentals are benefiting from more limited inventory, especially in suburban and secondary markets where renters are prioritizing space, privacy, and flexibility. Among the largest 100 metros, these are the top 5 with the biggest year-over-year single-family rental gains: : Augusta, GA: +6.7% Indianapolis, IN: +6.5% Cleveland, OH: +6.5% Providence, RI: +6.5% Columbia, SC: +6.3% Big picture:  Overall, while multifamily markets are digesting a record wave of new units, the single-family sector hasn’t seen the same inventory growth. That’s helped keep single-family rents more stable in many metros. In places like Denver, Phoenix, and Austin, multifamily rents are flat or falling, while single-family rents remain positive. Still, in supply-constrained markets—especially across the Northeast—both rents across the board are growing, supported by tight inventory and steady demand.  For real estate investors, this trend highlights the relative strength of single-family rentals in oversupplied markets—and the importance of tracking local supply conditions.

How SFR Investors Can Win in Today’s Market The housing market isn’t what it was three or four years ago—and it’s not going back anytime soon. For single-family investors, this means adapting to a “new normal” where higher mortgage rates, increased carrying costs, and a rise in resale inventory are reshaping the investment landscape. Well gone are the days of buyers lined up around the block and bidding wars on every listing. But that doesn’t mean opportunity has vanished—it just looks different now. Many of the conditions that are causing hesitation in the broader market may work in favor of investors who approach this cycle with discipline, creativity, and a long-term mindset.  From financing strategies to market-specific deal flow as listings sit longer, to improved pricing power on insurance for larger portfolios—today’s environment rewards those who are prepared to pivot. The good news? With the right approach, investors can still uncover solid opportunities to build wealth, grow cash flow, and position themselves ahead of the next upcycle. Here are five things investors can do to win in today’s housing market. Buy the Deal, Not the Fed Waiting on the Fed to cut rates is not an investment strategy—it’s a gamble.  While many would-be investors sit on the sidelines, hoping for a pivot that may come too late or too slowly, experienced investors are staying active and searching for deals that pencil out. They’re underwriting conservatively, negotiating more aggressively, and prioritizing deals that make sense in today’s market—based on current rates, rents, and risks. Rather than chasing hypothetical upside tied to future monetary policy, they’re baking in downside protection on the front end. It’s not about timing the Fed. It’s about structuring the deal so that it works with the hand you’re dealt today. More Inventory Is An Opportunity for Value Buyers  After a long stretch of near-record-low active inventory, single-family investors are finally seeing more resale homes come to market. For some, that might sound like bad news—more competition, less pricing power. However, the reality is that this normalization creates opportunities, particularly for disciplined buyers who focus on value. In some markets, specific properties are now remaining on the market for extended periods. Sellers growing fatigued by slow sales may be more willing to negotiate, opening doors for buyers to purchase homes below their previous peak prices. Especially in Q3 and Q4, expect pockets of deals that require some repairs or capital expenditures—classic value-add plays where investors can boost rents and equity over time. Investor Sentiment: More Bullish Despite the Headwinds Interestingly, when we fielded the LendingOne–ResiClub SFR Investor Survey this quarter, we found that investors are becoming more confident about buying—even as they acknowledge that the market feels slower and mortgage rates are higher than previously expected. In fact, in Q2 2025, 79% of single-family investors said they’re likely to purchase at least one more property in the next 12 months. That’s up from 61% in Q2 2024 and 77% in Q4 2024. This shift signals that many are embracing the new normal rather than waiting for old conditions to return. They recognize that market dynamics have changed permanently and are adjusting acquisition criteria accordingly, or they may be attracted by rising inventory and some markets turning into buyers’ markets. This pragmatic mindset bodes well for the single-family investment space. Rather than being paralyzed by uncertainty, investors who stay disciplined, focus on fundamentals, and pursue value will be best positioned to succeed. Insurance Stability Emerging After the Storm—Don’t Be Afraid to Policy Shop The last few years have seen a surge in property insurance costs, fueled by rising replacement values. However, according to our intel, this lagged inflationary spike is beginning to level off. This provides investors with better clarity for cash flow projections and long-term planning. And if you’re savvy, you’ll even be able to get it lowered a little. For those with multiple properties, now is an ideal time to explore portfolio-level insurance, which spreads risk across your holdings and can unlock significant discounts.  Even for smaller landlords, policy shopping—getting fresh quotes, reassessing coverage levels, and comparing carriers—can yield real savings in a market that’s no longer spiking month after month. It’s Time To Be Strategic!  Yes, the housing market today looks very different from the frantic boom of the pandemic years. But for single-family investors willing to think strategically and embrace change, it remains fertile ground for growth. Whether it’s taking advantage of ARMs, leveraging portfolio-level insurance savings, or hunting down value deals in rising inventory. The market’s “new normal”—and no one truly knows how long it’ll last—might require a little more patience and flexibility, but it also offers a real opportunity for those ready to adapt and invest with their eyes wide open.

The single-family build-to-rent (BTR) category isn’t niche anymore—it’s mainstream. Annual BTR deliveries hit 39,000 homes in 2024, a 455% jump from pre-pandemic 2019 levels. As of April 2025, there are another 90,000 purpose-built single-family rental units in active development across the country’s 100 largest metros. There’s a good reason why build-to-rent supply is up: renter preferences are shifting. According to a 2024 survey by John Burns Research and Consulting (JBREC), 36% of BTR residents now say they prefer renting over owning, up from 27% in 2023. That jump signals that more of today’s BTR renters aren’t just settling for rentals because they’re priced out—they’re actively choosing the lifestyle, flexibility, and convenience that BTR communities offer. But who exactly are the folks choosing to live in build-to-rent communities? What motivates them to rent rather than buy—and what keeps them there? To answer these questions, LendingOne analyzed the latest data. Here are 3 things to know about BTR renters in 2025. 1. Renters Want More Space That shift is clear: BTR homes increasingly cater to families who need extra space for kids, work-from-home setups, or multigenerational living. It’s part of what makes BTR communities fundamentally different from traditional apartment offerings, and a reason renters who would have once transitioned to homeownership are staying put. More Spacious Single-Family Rentals Are the New Normal 2. Preference for Renting is Ticking Up Across All Life Stages In 2024, renters at all life stages reported a stronger preference for renting than they did just a year earlier. BTR is a particularly attractive option for millennials who are reaching the prime age for major life milestones like child-rearing. Young singles/couples who rent in BTR communities, in particular, saw a 12-point jump in their preference for renting (from 23% in 2023 to 35% in 2024). Young families also experienced a 12-point increase (from 17% to 29%). It’s also an appealing option for empty nesters who want the financial flexibility and lifestyle ease of renting versus owning. Mature families and older adults—once assumed to be natural buyers—are also embracing rental life. In 2024, nearly half (46%) of mature singles and couples living in BTR communities say they are there by preference, up from 42% the year before. While the extra space is a bonus for the older crowd, they are also drawn to the amenities that tend to come along with BTR communities, including swimming pools, fitness centers, tennis courts, and clubhouses. This preference shift reflects a broader cultural change: renting, especially in high-quality, well-managed BTR communities, is now seen as a lifestyle choice, not a compromise. Share of Build-to-Rent Residents that Prefer to Rent 3. Affordability Math has Some Americans Renting Longer While preferences are shifting, strained home affordability remains a primary driver of build-to-rent’s growing popularity. In nearly every major metro, the monthly mortgage payment for a median-priced single-family home significantly exceeds the average monthly rent for a comparable BTR home. In San Francisco, the gap is over $4,000. In San Diego and Seattle, it’s more than $2,900. Even in fast-growing Sunbelt markets like Austin, Raleigh, and Phoenix, a mortgage payment for a single-family home costs about $1,100 more per month than renting one. That gap explains why many would-be buyers are choosing to stay in rental homes longer. The math just doesn’t make sense for many households—especially younger families who may not have the savings or income stability needed to qualify for today’s higher mortgage rates. Strained affordability blocks some renters from homeownership Big Picture For some Americans, build-to-rent homes are no longer a stepping stone—they’re a destination. With demand driven by young families, working professionals, and downsizing retirees, BTR communities offer the space, flexibility, and lifestyle that today’s renters increasingly seek.  That appeal is reflected in the scale of the U.S. build-to-rent pipeline, which now exceeds 90,000 units across the 100 largest metros. Even in BTR-saturated markets like Phoenix, Dallas, and Atlanta, development remains active. For real estate investors, that persistence signals confidence in the category’s long-term staying power.