169: New Single-Family Rental Survey: Small Investors to Take CONTROL in 2024 w/Rick Palacios Jr.

On The Market

BiggerPockets

Education, Investing, News, Business

4.8 • 859 Ratings

🗓️ 18 December 2023

⏱️ 45 minutes

🔗️ Recording | iTunes | RSS

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Summary

For years, we’ve been hearing about how the single-family rental market is being bought up by hedge funds, iBuyers, and institutional investors. For the average investor, it seems like the corporate landlords are getting an unfair advantage—they have better data, better financing, full-time staff, and deep pockets to buy whatever and wherever they want. But a new single-family rental survey shows that the big players aren’t the ones controlling the market—it’s the little guys. To walk us through this massive, single-family rental survey, is Rick Palacios Jr., Director of Research at John Burns Research and Consulting. Rick’s team accomplished the seemingly impossible task of measuring activity for 270,000 single-family rental homes to see how landlords are faring in 2023 and what their plans are for 2024. And while this survey focuses on REITs (real estate investment trusts), private groups, and other larger-type buyers, it provides invaluable insights for the small-time landlord. Rick will walk us through rent growth (and decline) from the past year, where he believes rents will be in 2024, whether or not expenses could continue to rise, how high mortgage rates are affecting buyers, and why institutional investors are struggling in this market while mom-and-pops are buying! In This Episode We Cover: What the largest single-family rental survey says about the 2024 housing market Rent “normalization” and why those who aggressively projected rising rents will get hit hard Rising expenses, insurance costs, and whether or not it could get even worse Why institutional investors pulled out of the market while small-time investors thrived How long the “lock-in effect” could last as high mortgage rates become the new norm Whether or not the multifamily rent crisis could spill over into the single-family market And So Much More! Links from the Show Find an Agent Find a Lender BiggerPockets Forums BiggerPockets Agent BiggerPockets Bootcamps Join BiggerPockets for FREE On The Market Join the Future of Real Estate Investing with Fundrise Connect with Other Investors in the “On The Market” Forums Subscribe to The “On The Market” YouTube Channel Dave's BiggerPockets Profile Dave's Instagram James' BiggerPockets Profile James' Instagram On The Market Podcast 31: Wall Street: Huge Threat or Harmless Hedge Funds? On The Market Podcast 110: Bullish Homebuilders, Affordable Housing, and Why Home Prices WON’T Move John Burns Research and Consulting Single-Family Rental Survey John Burns Research and Consulting Company LinkedIn John Burns Research and Consulting Newsletter John Burns Research and Consulting X/Twitter John Burns Research and Consulting Website Connect with Rick: Rick's LinkedIn Rick's X/Twitter Click here to listen to the full episode: https://www.biggerpockets.com/blog/on-the-market-169 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email advertise@biggerpockets.com. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Hey, everyone, welcome to On the Market.
0:09.5	I'm your host, Dave Meyer, joined today by my co-host James Dainerd.
0:15.1	James, I think I got a little early Christmas present for you.
0:19.8	What if I told you we could dig into the insights from
0:23.9	270,000 single family rentals today? Well, I mean, that's a lot to unpack. So as long as you do
0:34.5	all the analytics and deliver to me. You don't have to do it. We have a guest who's going to do it.
0:38.8	We actually have Rick Palacios Jr.
0:42.1	Who's the director of research and the managing principal at John Burns Research and Consulting.
0:48.0	If you don't know this company, they are one of the best data providers in the entire industry.
0:53.1	We've had their founder, John Burns,
0:54.5	on the show a couple of times. And Rick is joining us today because they do a survey.
1:00.4	They've been doing this for years where they pull 270,000 individual single family rentals.
1:07.7	I've never heard of a survey, sentiment index, anything that is this big.
1:13.8	So I think we're going to get some really incredible insights from Rick today.
1:18.2	Anything you're looking forward to or anything about the single family rental market you
1:21.8	really want to know?
1:23.0	I'm looking forward to just talking about a little bit about what the hedge fund guys are doing,
1:27.3	where the opportunities could go and in whether we think some more inventory is coming to market because, you know, as we know, inventory is tight, but people are thirsty for investments right now.
1:39.3	So I'm hoping more loosen up so we can get more deals in 2024.
1:43.6	I'm thirsty.
1:45.7	2020.
1:46.3	These are a thirsty year.
	...

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