Is real estate on your radar as 2025 unfolds? With the spring market just around the corner, it’s the perfect time to explore investment opportunities that can grow your portfolio meaningfully this year. Among the many strategies available, single-family rentals (SFRs) are emerging as a leading choice for building long-term wealth. Why are SFRs so effective? Let’s break it down:
Steady Passive Income
Single-family rentals provide one of the most reliable passive cash flow models available today. With rising demand for rental housing, SFRs have shown consistent growth, even in uncertain economic times.
Demand Is Surging
Data from Fannie Mae indicates that just one in five consumers believe that now is the right time to buy a home due to high home prices and mortgage rates[1]. For renters, single-family homes offer the best of both worlds: privacy and a sense of stability without the financial burden of ownership.
43% of Gen Z renters preferred single-family homes in a vibrant suburb over urban apartments, according to an NAA survey[2]. This trend is also strong among millennials and Gen X families seeking affordability and room to grow.
Rent Growth
SFRs have a history of resilience, even during economic downturns. This consistent growth underscores the stability of SFR investments, especially in uncertain markets. In 2023, multifamily rent growth nationally decelerated below 2%, while SFR rents grew by 3.3%.[3]
Appreciation Potential
While stock markets may fluctuate, real estate has proven to be a reliable asset for long-term appreciation. SFRs are no exception, offering a dual benefit: recurring rental income and property value growth.
According to Realtor.com, Over the past decade, U.S. home prices have appreciated by an average of 40%, with states like Colorado seeing gains of 65%, and Tennessee up by 49%. Even areas traditionally seen as more affordable, such as Ohio, experienced 39% appreciation.
For investors, this means SFRs not only generate cash flow today but also build wealth through long-term value growth.
Leverage Without the Hassle
Investing in single-family rentals doesn’t have to mean buying, renovating, and managing properties yourself. With platforms like Ark7, you can leverage key resources to build wealth without the traditional headaches of real estate ownership.
- Money: With fractional investing, you can own a share of a high-performing property without taking on the full financial investment at once.
- Time: Ark7 handles property management for you, so you can focus on enjoying passive income.
- Expertise: By leveraging the insights of seasoned real estate professionals, you gain access to top-tier properties with strong performance potential.
Contributing to Communities
Investing in SFRs isn’t just about building wealth—it’s also about making a positive impact.
- Better Housing Options: Investors help provide quality, affordable rental homes in areas of high demand.
- Community Development: Improved housing options uplift local neighborhoods, reduce blight, and contribute to higher property values.
- Sustainability: Many modernized properties are energy-efficient, reducing environmental impact while meeting renters’ needs.
In 2025, single-family rentals offer a unique combination of stability, growth, and impact. With rising rental demand, reliable appreciation trends, and platforms like Ark7 simplifying the process, SFRs make it easier than ever to grow your portfolio and build lasting wealth.
Source: [1] Fannie Mae National Housing Survey [2] NAAHQ survey [3] BTR & SFRs | The Rising Stars Of Rental Housing
