What residential rent inflation means for Crowdfunding
Though rent has been consistently increasing in nearly every state over the past few years, September 2021 witnessed the largest hike in single-family rental properties since at least 2005. In fact, according to the CoreLogic Single-Family Rent Index (SFRI)—one of the most widely cited rent metrics within the real estate industry—rents are up by a whopping 10.2 percent (year over year) as of the end of September.
Naturally, this sudden spike in single-family rents will directly affect renters. But it will also affect property owners, including syndication investors and others with active portfolios within the real estate investment community. While a rise in rent might create some new opportunities for investors to increase their expected ROI, it can also create some challenges, especially if it is unclear whether the spike in rent will continue in the future.