169: New Single-Family Rental Survey: Small Investors to Take CONTROL in 2024 w/Rick Palacios Jr.

For years, we’ve been hearing about how the single-family rental market is being bought up by hedge funds, iBuyers, and institutional investors. For the average investor, it seems like the corporate landlords are getting an unfair advantage—they have better data, better financing, full-time staff, and deep pockets to buy whatever and wherever they want. But a new single-family rental survey shows that the big players aren’t the ones controlling the market—it’s the little guys.

To walk us through this massive, single-family rental survey, is Rick Palacios Jr., Director of Research at John Burns Research and Consulting. Rick’s team accomplished the seemingly impossible task of measuring activity for 270,000 single-family rental homes to see how landlords are faring in 2023 and what their plans are for 2024. And while this survey focuses on REITs (real estate investment trusts), private groups, and other larger-type buyers, it provides invaluable insights for the small-time landlord.

Rick will walk us through rent growth (and decline) from the past year, where he believes rents will be in 2024, whether or not expenses could continue to rise, how high mortgage rates are affecting buyers, and why institutional investors are struggling in this market while mom-and-pops are buying!

In This Episode We Cover:

What the largest single-family rental survey says about the 2024 housing market

Rent “normalization” and why those who aggressively projected rising rents will get hit hard

Rising expenses, insurance costs, and whether or not it could get even worse 

Why institutional investors pulled out of the market while small-time investors thrived

How long the “lock-in effect” could last as high mortgage rates become the new norm

Whether or not the multifamily rent crisis could spill over into the single-family market

And So Much More!

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On The Market Podcast 31: Wall Street: Huge Threat or Harmless Hedge Funds?

On The Market Podcast 110: Bullish Homebuilders, Affordable Housing, and Why Home Prices WON’T Move

John Burns Research and Consulting Single-Family Rental Survey

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Click here to listen to the full episode: https://www.biggerpockets.com/blog/on-the-market-169

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