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Single-Family Rentals See Start of Shrinking Profit Margins

After a dizzying boom as housing prices soared, profit margins on three-bedroom single-family home rentals narrowed in the first quarter of 2022, according to property data firm ATTOM. So reports the Commercial Observer.

house 2368389 1920 280x186Median home prices leaped by more than 15% from 2021 to 2022 in half of the 212 counties tracked by ATTOM. Average rents kept up that pace in just one-third of those counties.

“The good news for these property owners is that their yields should improve as annual rental rates increase, and they should also benefit from home price appreciation over time,” said Rick Sharga, executive vice president of market intelligence at ATTOM.

Read the full article from the Commercial Observer.

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