Do Single-Family Rentals Really Compete With Apartments? via Property Management Insider

Thanks to one sentence uttered by Warren Buffett and some major overplay by the media, single-family rentals are a hot investment choice now. Thus, the analysts at MPF Research are fielding a constant stream of inquiries about whether the bulk sale of bank-owned single-family homes to investors who will operate them as rentals will impact the apartment sector.

Our take is that the world hasn’t changed much.

While apartments and for-lease single-family homes are both rental product types, they by and large appeal to different audiences. Urban core apartments feature mostly small units suitable for single-person households and childless couples who live in them in part for lifestyle reasons. Those apartment residents aren’t in the suburbs – where single-family rentals are clustered – by choice, and finances often don’t have anything to do with those decisions.

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