Single-Family Rentals Increased Faster than Apartments in 22 of 30 Big Cities, Led by Phoenix

The U.S. housing market has gone through nothing short of a transformation in the last decade. The number of people renting their abode has increased significantly, in some cities surpassing the number of homeowners. The housing market quickly responded to this shift by adding millions of rental units in just a few years — both multi-family and single-family rentals — with many U.S. cities witnessing a frenzy of apartment construction.

The most interesting part of this transformation, however, was the fact that the rental market expanded even faster horizontally than it did vertically. For the better part of the decade ending in 2016, single-family homes for rent were the fastest-growing type of rental in the U.S., outpacing the formidable apartment boom seen throughout the country.

According to U.S. Census estimates, the number of single-family rentals (SFR) in the U.S. grew by 31% in the 10-year period immediately following the housing crisis (2007 to 2016), while multifamily rentals (MFR) grew by 14%. In net numbers, single-family rentals in the U.S. increased by 3.6 million units in 10 years, more than rental apartments, which increased by 3.2 million units. As of 2016, the U.S. Census counted a total of over 15 million single-family homes for rent in the United States and a total of over 26 million apartments for rent.

The main trigger for this wave of single-family homes turning into rental homes was the housing crash of the late 2000s. Many single-family homes with “underwater” mortgages were swept up by a few institutional investors during the crisis and turned into rentals. However, a much larger number of small investors became landlords during that period of time. According to a recent Urban Institute study, most single-family rentals in the U.S. are owned by individual investors. Of the 15+ million single-family rentals currently on the market, only 2% are owned by large investment firms, and about 45% belong to landlords who own just one unit.

Phoenix leads with the fastest growth and the largest gain in single-family rentals

Although they’re more common in suburban settings, single-family rentals have been incredibly prolific in most of the nation’s biggest urban centers. When we looked at increases in the number of renter-occupied households by type, we found that in 22 of the 30 largest U.S. cities single-family rentals expanded faster than apartments between 2007 and 2016.

With some of the largest numbers of foreclosures and sharpest drops in home values during the housing bust, Phoenix tops the list of cities with the biggest percentage increase in single-family rentals. According to U.S. Census estimates, the number of houses for rent in Phoenix increased by a whopping 77% (from 56,900 in 2007 to 100,800 in 2016). Phoenix saw about 44,000 single-family homes turn into rentals during this 10-year period, the largest gain among the 30 cities analyzed.

Boston had the second-fastest increase in single-family homes for rent, 63%, versus a 20% increase in apartments. However, the number of single-family rentals in Boston is much smaller than in Phoenix, going from about 8,200 SFR in 2007 to 13,400 in 2016, as Boston was less impacted by foreclosures and price depreciation.

Fort Worth saw an increase of 60% in single-family rentals, the third-fastest among the 30 largest cities, compared to a 17% increase in apartments. Prompted by the housing downturn, the number of single-family rentals in Fort Worth rose from 33,400 in 2007 to 53,400 in 2016. Although it isn’t one of the largest markets for single-family rentals, Fort Worth witnessed a significant increase during that time period.

Rounding up the top 5 are Austin and Charlotte, each with a 55% increase in SFR. In 2016, there were 50,500 single-family houses for rent in Austin, 17,900 more than in 2007. Meanwhile, single-family houses for rent in Charlotte amounted to 51,400 SFR in 2016, 18,200 more than 10 years prior.

Also on the list of 22 cities where single-family rentals increased at a faster rate than apartments are El Paso, TX; Indianapolis; Nashville, TN; Las Vegas; Chicago; Memphis, TN; Houston; Denver; Louisville, KY; Columbus, OH; Jacksonville, FL; San Jose, CA; Oklahoma City, OK; New York City; Detroit; San Diego; and Baltimore, MD.

Look up more cities in the table below.

In absolute numbers, the cities of Phoenix, Fort Worth, Indianapolis, Memphis, Detroit, Las Vegas, El Paso, Oklahoma and Baltimore gained more rentals in the form of single-family homes than apartments during the 10-year period.

Per U.S. Census 2016 estimates, the five largest stocks of single-family rentals in a city are in:

1. Los Angeles: 184,000
2. Philadelphia: 111,600
3. Houston: 102,100
4. Phoenix: 100,800
5. New York City:94,000

Smaller metros have the largest shares of single-family rentals

Zooming out to the metro level, suburban areas are where we typically see the most single-family rental homes. On average, about 70% of SFR are located outside the boundaries of the largest principal city of a metropolitan area.

When we analyzed the metro areas surrounding the nation’s 30 largest U.S. cities, we noticed that the less populated metros favor single-family rental homes, while the larger and denser metros favor apartments.

The metro area of Oklahoma City has the largest share of single-family rentals. Almost half (48%) of its rental stock is made up of single-family homes. The second largest share of SFR is in metro Memphis, 45% of its total rentals. The metro area of Detroit holds the third largest share of single-family rentals, 44%, based on U.S. Census estimates.

On the other hand, New York City-Newark-Jersey City metro has the smallest share of SFR, as apartments make up 89% of the total rental units in this area. Boston metropolitan area rentals are predominantly apartments as well, 86%. Also, 76% of the rental market in the Greater Chicago Area is represented by apartments. Look up more metros in the table below.

Why are single-family homes for rent so popular now?

While everyone’s been waiting for homeownership to fully regain its pre-crisis strength, single-family rental homes have become “Plan B” for those anxious to break out of their apartments, and can’t buy a house yet, or have lost their homes to foreclosure, short sale, or financial setbacks. A little over half of the total number of single-family home rentals on the U.S. market are occupied by families: married couples and parents with minor children. Although they can cost about $1,000 more on average in monthly rent than an apartment, single-family rentals offer the extra space families need, the privacy of their own home, and the kind of neighborhood they want.

Houses are also the rental of choice for many single people who want to share the cost of rent with other single roommates. This demographic represents almost half of the renters living in single-family houses today. Census data also shows that people from all generations are renting single-family homes: we see a large number of downsizing Baby Boomers, older Millennials who are starting to form households, as well as Generation X-ers, who already have families with children.

Changes in SFR vs MFR in the top 100 largest U.S. cities (2007-2016):

City	Population 2016	Single-Family % change	Single Family # change	Multi-Family % change	Multi-Family # change
Phoenix, AZ	1,615,000	77%	43,800	21%	26,500
Houston, TX	2,304,400	39%	28,800	23%	71,600
Fort Worth, TX	855,900	60%	20,000	17%	9,700
Indianapolis, IN	852,500	48%	20,000	14%	11,900
Los Angeles, CA	3,976,300	12%	19,200	14%	88,100
New York, NY	8,537,700	24%	18,400	4%	86,400
Charlotte, NC	842,000	55%	18,200	29%	22,100
Austin, TX	947,900	55%	17,900	17%	21,700
Chicago, IL	2,705,000	41%	17,600	13%	62,600
Memphis, TN	652,800	41%	17,400	11%	8,500
San Antonio, TX	1,492,500	26%	16,100	27%	32,300
Detroit, MI	672,800	24%	15,700	1%	400
San Diego, CA	1,406,600	23%	15,600	13%	20,400
New Orleans, LA	391,500	152%	15,500	119%	30,900
Columbus, OH	862,600	34%	14,800	31%	32,500
Philadelphia, PA	1,567,900	15%	14,700	17%	23,500
Las Vegas, NV	632,900	42%	13,000	6%	3,700
Jacksonville, FL	880,600	32%	12,600	27%	18,400
Raleigh, NC	458,900	92%	12,300	26%	13,400
Stockton, CA	307,100	73%	12,100	-5%	-1,100
El Paso, TX	683,100	51%	12,100	14%	6,700
Tampa, FL	377,200	73%	11,500	38%	14,300
Tucson, AZ	530,700	37%	11,200	-11%	-7,300
Dallas, TX	1,317,900	26%	11,100	28%	53,800
Nashville, TN	660,400	47%	11,000	28%	20,000
Denver, CO	693,100	37%	11,000	35%	27,300
Colorado Springs, CO	465,100	59%	11,000	33%	11,700
Toledo, OH	278,500	70%	10,800	10%	3,000
San Jose, CA	1,025,400	32%	10,700	22%	16,900
Milwaukee, WI	595,100	46%	10,500	11%	9,800
Oklahoma, OK	638,300	30%	9,900	7%	3,400
Wichita, KS	389,900	56%	9,900	2%	700
Sacramento, CA	495,200	33%	9,800	9%	4,700
Louisville, KY	616,300	35%	9,800	35%	17,700
Mesa, AZ	484,600	62%	9,600	8%	3,300
Albuquerque, NM	559,300	43%	9,400	-7%	-3,800
Baltimore, MD	614,700	20%	9,300	12%	7,900
Omaha, NE	447,000	41%	8,200	21%	8,200
Atlanta, GA	472,500	51%	8,100	39%	25,100
Cleveland, OH	385,800	29%	7,900	3%	1,800
Miami, FL	453,600	33%	7,800	46%	28,100
Reno, NV	245,300	80%	7,700	4%	1,100
Virginia Beach, VA	452,600	33%	7,600	21%	5,700
Cincinnati, OH	298,800	66%	7,500	6%	3,800
Richmond, VA	223,200	80%	7,300	22%	6,700
Durham, NC	263,000	72%	7,300	20%	6,200
Scottsdale, AZ	246,600	128%	7,200	23%	4,800
St. Petersburg, FL	261,000	80%	7,100	11%	2,800
Seattle, WA	704,400	28%	6,900	33%	34,500
Oakland, CA	420,000	41%	6,500	15%	9,900
Arlington, TX	392,800	56%	6,400	-2%	-600
Plano, TX	286,000	163%	6,000	24%	5,900
Kansas, MO	481,400	19%	6,000	16%	7,800
St. Louis, MO	311,400	49%	5,900	4%	2,100
North Las Vegas, NV	238,700	44%	5,700	25%	2,600
Riverside, CA	324,700	44%	5,600	-4%	-900
Pittsburgh, PA	303,600	31%	5,500	15%	6,400
Tulsa, OK	403,600	21%	5,400	10%	4,700
Portland, OR	639,600	19%	5,300	28%	19,900
Boston, MA	672,800	63%	5,200	20%	27,100
St. Paul, MN	302,400	77%	5,200	10%	3,900
Glendale, AZ	245,800	61%	5,000	23%	4,600
Chandler, AZ	247,500	48%	4,900	47%	6,400
Lincoln, NE	280,400	40%	4,500	21%	5,600
Garland, TX	234,600	54%	4,500	10%	1,600
Aurora, CO	362,200	38%	4,500	25%	7,700
Orlando, FL	277,200	39%	4,200	44%	18,100
Henderson, NV	293,000	30%	4,200	25%	4,100
Corpus Christi, TX	325,700	28%	4,200	17%	4,500
Washington, D.C.	681,200	19%	4,100	24%	27,700
Paradise, NV	242,000	41%	4,000	19%	6,700
San Bernardino, CA	216,200	37%	4,000	-3%	-600
Irvine, CA	266,100	43%	3,800	73%	15,100
Winston, NC	242,200	28%	3,700	11%	2,600
Fresno, CA	522,000	13%	3,500	16%	8,000
Santa Ana, CA	334,200	36%	3,500	-1%	-200
Norfolk, VA	245,100	24%	3,300	7%	2,100
Arlington, VA	230,100	76%	3,300	25%	9,800
Lexington-Fayette, KY	318,400	21%	3,300	9%	3,100
Fremont, CA	233,100	36%	3,300	25%	3,400
Lubbock, TX	252,500	20%	3,200	29%	5,700
Fort Wayne, IN	261,300	26%	3,100	14%	3,200
Chula Vista, CA	267,200	31%	3,000	7%	1,400
Boise, ID	223,200	27%	3,000	7%	1,300
Anchorage, AK	298,200	30%	3,000	-8%	-2,400
Greensborom, NC	287,000	21%	2,900	19%	6,400
Anaheim, CA	351,100	38%	2,900	14%	5,500
Laredo, TX	258,000	35%	2,900	11%	1,300
Minneapolis, MN	413,600	25%	2,400	24%	15,300
Bakersfield, CA	376,400	12%	2,300	29%	6,500
Madison, WI	252,600	46%	2,300	42%	14,600
Chesapeake, VA	237,900	22%	1,800	35%	3,500
Irving, TX	238,300	38%	1,800	15%	6,000
Buffalo, NY	256,900	14%	1,700	1%	600
Jersey City, NJ	264,200	44%	1,500	28%	15,000
Hialeah, FL	236,400	12%	1,200	20%	5,000
Baton Rouge, LA	227,700	9%	1,200	-8%	-2,700
Newark, NJ	281,800	8%	500	25%	14,100
Long Beach, CA	470,100	-2%	-400	14%	9,900
San Francisco, CA	870,900	-9%	-2,600	14%	24,600

Total stock of SFR vs MFR in the metro areas of the 30 largest U.S. cities (2016):

Metropolitan Area	No. of single-family units	No. of multi-family units	Principal City	No. of single-family units	No. of multi-family units
Phoenix-Mesa-Scottsdale	269,000	342,000	Phoenix, AZ	100,800	154,100
Boston-Cambridge-Newton	93,000	599,900	Boston, MA	13,400	160,100
Dallas-Fort Worth-Arlington	310,300	699,400	Fort Worth, TX	53,400	67,700
Austin-Round Rock	95,400	207,500	Austin, TX	50,500	152,100
Charlotte-Concord-Gastonia	129,900	168,000	Charlotte, NC	51,400	98,800
El Paso	42,300	59,300	El Paso, TX	35,900	56,200
Indianapolis-Carmel-Anderson	110,400	155,900	Indianapolis, IN	61,300	95,600
Nashville-Davidson-Murfreesboro-Franklin	81,900	152,400	Nashville, TN	34,300	91,700
Las Vegas-Henderson-Paradise	144,500	208,900	Las Vegas, NV	43,700	60,900
Chicago-Naperville-Elgin	296,200	971,800	Chicago, IL	60,400	531,800
Memphis	95,600	109,100	Memphis, TN	60,000	82,800
Houston-The Woodlands-Sugar Land	283,400	627,300	Houston, TX	102,100	387,500
Denver-Aurora-Lakewood	121,900	268,200	Denver, CO	41,000	104,300
Louisville/Jefferson County	65,700	102,300	Louisville, KY	37,600	68,200
Columbus	105,400	198,400	Columbus, OH	58,300	136,300
Jacksonville	77,800	105,200	Jacksonville, FL	51,400	86,200
San Jose-Sunnyvale-Santa Clara	86,500	194,000	San Jose, CA	44,000	93,000
Oklahoma City	90,800	89,300	Oklahoma, OK	42,600	53,700
Seattle-Tacoma-Bellevue	167,800	415,400	Seattle, WA	31,900	139,700
Dallas-Fort Worth-Arlington	310,300	699,400	Dallas, TX	53,100	248,200
San Antonio-New Braunfels	114,700	177,000	San Antonio, TX	77,200	150,800
New York-Newark-Jersey City	388,800	3,086,100	New York, NY	94,000	2,019,700
Detroit-Warren-Dearborn	241,200	295,300	Detroit, MI	80,900	58,700
San Diego-Carlsbad	182,900	339,600	San Diego, CA	84,600	183,100
Baltimore-Columbia-Towson	143,300	216,900	Baltimore, MD	55,600	74,700
Washington-Arlington-Alexandria	230,100	588,400	Washington, DC	25,700	145,100
Portland-Vancouver-Hillsboro	111,000	232,200	Portland, OR	34,000	91,800
Philadelphia-Camden-Wilmington	274,500	467,200	Philadelphia, PA	111,600	165,500
Los Angeles-Long Beach-Anaheim	654,400	1,600,000	Los Angeles, CA	184,000	696,300
San Francisco-Oakland-Hayward	219,200	560,400	San Francisco, CA	26,400	195,700

Methodology

Data and terminology source: U.S. Census Bureau, American Community Survey – 2007 to 2016 1-year estimates. A single-family unit is defined as per U.S. Census Bureau as 1 unit attached or 1 unit detached. A multi-family unit is defined as 1 unit in a building of 2 or more units, also referred to as an apartment. A rental or rental unit is defined a renter-occupied housing unit. Where the share of single-family units and the share multi-family units do not add up to 100%, the remaining % share is represented by other types of rentals (mobile, RV and van). City and metropolitan area (MSA –  metropolitan statistical area) are defined as per Census Bureau’s MAF/TIGER database. Amounts may be rounded to the nearest hundred or the nearest thousand.