Thursday, May 29, 2025

Guardian Asset Management

Single Family Rental

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U.S. Single-Family Rents Climb for Third Straight Month

U.S. single-family rent prices rose for the third consecutive month in March, according to Cotality's latest Single-Family Rent Index (SFRI). Rents increased 2.9% year over year -- slightly higher than the 2.8% annual growth reported in March 2024 -- signaling a modest but steady acceleration in the rental market.

"Single-family rent growth picked up for the third consecutive month in March, appearing to have bottomed out in December of last year," said Molly Boesel, senior principal economist at Cotality. "National trends are firming. Markets with large numbers of new rental units coming online showed softness in single-family rents, as these new units give renters some bargaining power."

Dallas, for instance, experienced a -0.5% annual decline in single-family rents in March, marking the lowest growth among major U.S. metros. Analysts point to a supply-driven dynamic, with more new rental properties giving tenants greater negotiating leverage.

High-end rental properties led the overall growth, with rents increasing 3.5% annually -- up from a 2.9% rise a year earlier. In contrast, lower-end properties saw more modest gains, with rents rising just 2.1% in March, down from 2.7% in March 2024.

2025 Single-Family Rental Index

Single-family rent growth picked up for the third consecutive month in March, appearing to have bottomed out in December of last year. National trends are firming, and markets with large numbers of new rental units coming online showed softness in single-family rents, as these new units give renters some bargaining power. This can be seen in the single-family rent growth in Dallas, which showed an annual decrease of 0.5 percent in March.

Rent prices for high-end properties increased 3.5 percent year over year in March 2025, an increase from the gain of 2.9 percent year over year in March 2024. In contrast, low-end rent prices only increased 2.1 percent year over year in March 2025, which is a drop off from the gain of 2.7 percent seen in March 2024.

Rent for both detached and attached rentals grew by 2.8 percent in March 2025.  

ATTOM Ranks Best Counties for Buying

Single-Family Rentals in 2025

 ATTOM, a leading curator of land, property data, and real estate analytics, today released its Q1 2025 Single-Family Rental Market report, which ranks the best U.S. markets for buying single-family rental properties in 2025.

The report analyzed single-family rental returns in 361 U.S. counties with sufficient rental and home-price data. The analysis for this report incorporated median rents and median home prices collected from ATTOM’s nationwide property database, as well as publicly recorded sales deed data licensed by ATTOM

The report shows that the annual three-bedroom gross rental yield (annualized median gross rent income divided by median purchase price) among the 361 counties analyzed is projected to be 7.45 percent in 2025. That is down slightly from an average of 7.52 percent in those same markets during 2024.

Yields are declining from 2024 to 2025 in nearly 60 percent those counties after growing in a small majority from 2023 to 2024.

Housing Risk Threatens 2025 Economic Outlook

Citi Research warns housing is now the top threat to the US economy, citing a slowdown in residential investment and rising inventory.

Mortgage rates near 7% are discouraging buyers, while home sales, permits, and prices continue to drop.

Commercial real estate values are falling across all sectors, led by a 12.1% annual drop in multifamily property values.

If housing weakness spreads to jobs, the Federal Reserve may be forced to cut rates sooner than expected.

This Housing Market Sector is on the Rise and May be a Viable Alternative for Renters

Those who want to know what it's like to live in a house before buying one may have a chance to experience it. The built-to-rent (BTR) sector of the economy is booming, allowing renters to rent single-family homes. Approximately 100,000 BTR properties are being built across the U.S., with many of them concentrated in the Southwest. Phoenix, Arizona, is leading the way with 17,000 rental homes as of 2024. Those who are looking for an apartment community that feels like a single-family living experience may be in luck. Such communities will give renters a glimpse into homeownership without actually owning the home.

Rent vs Buy Calculator

NerdWallet’s Rent vs. Buy calculator has been around for several years — and to make sure you’re getting the most relevant answers, a team of Nerds recently re-reviewed every input for accuracy in today’s changing market. This updated calculator reflects the latest national averages (such as insurance costs), as well as current economic forecasts (such as rent and home price growth). 

To use our calculator you’ll need a few pieces of basic information. If you don’t know a specific number, use our existing assumptions as a ballpark. Costs may vary based on your budget and where you live, so we’ve included suggestions to create a more accurate estimate.