Andrew J. Demers
Structured Portfolio Management, LLC
100 Washington Blvd.
Stamford, CT 06902
Institutional Affiliation: SPM LLC
NBER Working Papers and Publications
|December 2015||Total Returns to Single Family Rentals|
with Andrea Eisfeldt: w21804
The market value of US Single Family Rental assets is $2.3 trillion, yet we believe that we provide the first systematic analysis of total returns to Single Family Rentals over a long time period, in a broad and granular cross section. Analogous to the dividend yields and capital gains that constitute total equity returns, total returns to single family rentals have two components: rental yields and house price appreciation. It is crucial to account for both total return inputs, both because they contribute approximately equally to returns at the national level, and because they are negatively correlated in the cross section of US cities. While the aggregate US Single Family Rental portfolio has historically benefitted equally from each of the two return components, high price tier cities ...