The

single-family
rental
(SFR)
space
has
taken
off
since
the
financial
crisis
in
2008.
Now
a
new
segment
within
the
SFR
sector
—

luxury
homes
—
is
gaining
steam.

Point2,
an
international
real
estate
search
portal,
analyzed
its
internal
data,
public
records
and
other
sources
to
determine
that
luxury
rentals
are
making
up
an
increasingly
large
share
of
all
single-family
rentals,
with

California
cities
leading
the
way.
Luxury
rentals
were
defined
as
those
with
monthly
rents
of
at
least
$5,000.

“By
choosing
a
single-family
home
for
rent,
they
get
the
indoor
and
outdoor
space
they
need,
while
remaining
mortgage-free,
maintenance-free
and
stress-free,”
the
report
reads.
“This
really
seems
like
a
combination
made
in
heaven,
with
more
and
more
renters
waking
up
to
the
advantages
of
renting
a
house
rather
than
buying
one,
especially
in
the
current
market.”

This
trend
is
being
driven
by
a
couple
factors.
First,
build-to-rent
stock
has
grown
substantially.
In
2014,
the
number
of
build-to-rent
homes
completed
was
4,056.
In
2023,
that
number
reached
27,495,
a
75%
increase
compared
to
the
previous
year.

At
the
same
time,
incomes
among
single-family
renters
have
ballooned.
Between
2017
and
2022,
Point
2
found
that
the
number
of
single-family
renter
households
making
more
than
$150,000
doubled.
The
higher
the
income
bracket,
the
more
renters
in
these
brackets
are
turning
to
single-family
rentals.

Households
making
less
than
$50,000,
however,
shrank
by
17%,
suggesting
they’re
getting
priced
out.
Those
making
between
$50,000
and
$75,000
grew
by
a
more
modest
10%.

The
trend
isn’t
evenly
dispersed
geographically.
Five
of
the
top
six
cities
with
the
largest
shares
of
single-family
rentals
in
the
luxury
tier
are
in
California.
Irvine
has
the
most,
with
a
whopping
73.6%
of
its
single-family
rentals
in
the
luxury
space.

In

Los
Angeles,
58.9%
of
single-family
rentals
are
in
the
luxury
tier,
while
29%
are
in
the
ultra-luxury
tier
(monthly
rents
of
at
least
$10,000).

Boston’s
luxury
share
is
42.7%,
with
San
Diego
at
40.7%
and
San
Francisco
at
37%.

Nationally,
the
single-family
rental
space
now
comprises
32.5%
of
all
rentals,
according
to
the
Point2
analysis
of


U.S.
Census
Bureau
data.

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