Data powerhouse RealtyTrac recently released their Q3 2016 Single Family Rental Market Report which found that for homes purchased in 2016 the average single-family rental returns dropped to a nine-year low. Analyzing data from 473 counties, the report says the average annual gross rental yield (monthly rent, annualized, divided by median the home price) was 8.7% for properties purchased in the first seven months of 2016, down from an average of 8.8% from 2015 and the lowest level since 2007 – when it was 7.3%.
“While average rental returns on properties purchased so far in 2016 are at a nine-year low, these returns are still attractive compared to alternative investing opportunities,” said Daren Blomquist, senior vice president at ATTOM Data Solutions. “After a drop-off in single family purchases by both individual and institutional investors over the past two years, we’re starting to see investor acquisition activity pick up again”
