Total Returns to Single Family Rentals

60 Pages Posted: 14 Dec 2015 Last revised: 31 Jul 2021

See all articles by Andrea L. Eisfeldt

Andrea L. Eisfeldt

UCLA Anderson School of Management

Andrew Demers

Structured Portfolio Management, LLC

Date Written: December 2015

Abstract

The market value of US Single Family Rental assets totals more than $2.3 trillion. We provide the first systematic analysis of total returns to Single Family Rentals in a long, broad, and granular panel. Total returns are approximately equalized across US cities at 8.5%, similar to average equity returns. On average, net rental yields and house price appreciation each contribute half total returns. However, they are negatively correlated in the cross section of cities. High-price-tier cities accrued more capital gains, while low-price-tier cities had higher net rental yields. Within cities, lower-price-tier zip codes have higher total returns.

Suggested Citation

Eisfeldt, Andrea L. and Demers, Andrew, Total Returns to Single Family Rentals (December 2015). NBER Working Paper No. w21804, Available at SSRN: https://ssrn.com/abstract=2703209

Andrea L. Eisfeldt (Contact Author)

UCLA Anderson School of Management ( email )

110 Westwood Plaza
Los Angeles, CA 90095-1481
United States

HOME PAGE: http://https://sites.google.com/site/andrealeisfeldt/

Andrew Demers

Structured Portfolio Management, LLC ( email )

100 Washington Blvd
Stamford, CT 06902
United States

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