Daren Blomquist, senior vice president at RealtyTrac, spotlights a first quarter analysis of single family rental returns in 448 U.S. counties each with a population of at least 100,000 and sufficient rental and home price data.
Blomquist notes that rising home prices and household incomes that haven't kept up with those prices are suppressing single-family rental investment growth on a broad basis. The average annual gross rental yield among the 448 counties was 9.4 percent, down from an average of 9.5 percent in the first quarter of 2015. Still, there are exceptions. He writes:
“The strong South Florida rental market continues to give solid returns to the investors,” said Mike Pappas, president and CEO of the Keyes Company, covering the South Florida market, where Miami-Dade County’s potential single family rental return was 8.4 percent with rents rising 4 percent annually and home prices rising 11 percent annually. “Our limited land with growing population give the investors an additional equity kick in rising prices.”