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The State of Single-Family Investments for 2017: Positive


For investors in single-family homes, now be a good time to start or to enhance your portfolio. That’s the general conclusion, with caveats, of HomeUnion’s recently published 2017 Single-Family Rental Research Report.

The 41-page report researched the national economy, interest rates, inflation, and analyzed what it all means for investors in single-family homes.

A quick summary: “The outlook remains positive for 2017, although rent growth in some major coastal markets will be subdued relative to last year’s levels. Elsewhere, supply and demand for rental properties nationwide will result in another solid year for investors.”

What about demand for single-family rental homes? According to the HomeUnion report, the news is positive: “The economic recovery will continue to generate hundreds of thousands of new households this year, creating an unprecedented demand for single-family rentals, especially as single-family construction levels remain tempered compared to boom periods.”

And interest rates? “By the end of 2017, we expect interest rates to climb approximately 75 basis points, but remain relatively low.”

How might inflation go in 2017? “Inflationary concerns that arose when the new President took office will place upward pressure on 10-Year Treasuries.”

When should you buy? “To take advantage of healthy conditions, we believe

acquiring properties during the first half of the year would protect your existing portfolio and help build wealth over the long term.”

And Chicago? The HomeUnion report also provided snapshots of 25 local markets. Chicago, where SpringView Investment’s portfolio is currently concentrated.

“With strong occupancy rates and solid rent growth, investors in Chicago are achieving cap rates of more than 7 percent” the report said. “However, with less deals available, and a high median sale price, investors are beginning leave the market. Those who remain are capitalizing on tenant demand by moving up the quality scale.”

Chicago vacancies have continued to decline; see chart below.

For the full report, please download here.

Consider investing in a professionally managed portfolio of single-family homes? Please contact Harold Willig at harold.willig@springviewinvestments.com or 917-209-4452.

Harold Willig is the Manager of SpringView Investment Management, LLC, which he founded in 2012. Mr. Willig also served as HFZ Capital Group’s Chief Financial Officer, and was responsible for the oversight of HFZ's Finance and Accounting team. He has over 16 years of finance and accounting experience. Mr. Willig also ran a consulting practice and provided valuation, analysis, and transactional support services to multi-billion dollar real estate companies. Previously, Mr. Willig served as the Senior Controller and Vice President of Financial Analysis and then the Chief Financial Officer of the Athena Group, a multifamily development company and fund manager.

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