Updated: Feb 18, 2022
JP Morgan released its best CRE categories for investment picks a few days ago. The wealth management company has defined a group of sectors that are expected to benefit from high user demand during 2022, according to its 4th annual Global Alternatives Outlook.
SFR has been selected as the number two pick for the next 18 months among these categories.
Harrison Street and Core Spaces, two of the most critical real estate firms in the nation, are planning a $1.5 billion single-family rental venture.
"Affordability challenges in the U.S. housing market and changes in lifestyle preferences are driving demand for single-family rentals, and we believe our progressive design and hospitality-driven approach will differentiate our BTR communities in the single-family rental market," said Dan Goldberg, President of Core Spaces.
Amongst the cities selected for this project, Austin, Dallas, and Orlando represent priority markets for this alliance. These cities shine due to their dense population, diversity, high employment rates, and tremendous future projections.
With a population of 950,807, the capital of Texas, Austin is the fourth most populous city in the state. Known to be one of the sunniest cities in the United States of America, Austin has become a tourism center and home to multiple tech giants that have set their headquarters in this city.
Austin's employment statistics are above the national average, such as the average income per resident, over 5% higher. Even the job growth is predicted to rise 47% in the next ten years, according to bestplaces.net.
The city of Dallas is considered a "beta" global city. The economy is diverse with major sectors, including financial services, information technology, telecommunications, and transportation. Dallas developed as a solid industrial and financial center with a significant inland port due to the convergence of major railroad lines, interstate highways, and the development of one of the largest and busiest airports in the world, the Dallas/ Fort Worth International Airport.
According to the U.S. Census Bureau, the Orlando metropolitan area had a population of 2,509,831 in 2017, making it the sixth-largest metropolitan area in the southern United States. Orlando is a major industrial and hi-tech center. The metro area has a $13.4 billion technology industry that employs 53,000 people and is a nationally recognized innovation cluster in digital media, agricultural technology, aviation, aerospace, and software design.
With multiple players investing in SFR, alliances are being created to hunt the best opportunities in the real estate space. Single-family-rental stays as one of the top sectors to explode due to its increasing demand amongst American families giving stakeholders one more reason to pursue SFR portfolios more than ever.