According to the ATTOM Data Solutions 2021 U.S. Single Family Rental Market Report just released, among the 495 U.S. counties analyzed, the average annual gross rental yield for 2021 is 7.7 percent. That figure is down from an average of 8.4 percent in 2020.
ATTOM’s latest single family rental market analysis reported that the potential annual gross rental yields for 2021 decreased compared to 2020 in 86.9 percent of the counties included in the analysis. Those counties posting the greatest decreases in rental returns include Baltimore City/County, MD (yield down 43.9 percent); St. Louis City/County, MO (down 35.5 percent); St. Louis County, MO (down 29.3 percent); Bonneville County (Idaho Falls), ID (down 26.7 percent) and Fairfield County (Stamford), CT (down 24 percent).
The 2021 SFR market report noted that among the top 50 highest rental returns for counties analyzed in 2021, 25 are in the Midwest, 15 are in the South and 10 are in the Northeast. According to the report, counties with the highest potential annual gross rental yields for 2021 include Schuylkill County, PA, in the Pottsville metro area (26.1 percent); Bibb County, GA, in the Macon metro area (18.1 percent); Baltimore City/County, MD (16.2 percent); La Salle County, IL, in the Ottawa metro area (14.1 percent) and Chautauqua County, NY, in the Jamestown metro area (13.7 percent).
ATTOM’s new report also uncovered the counties with the lowest potential annual gross rental yields for 2021. Those counties include Williamson County, TN, in the Nashville metro area (3.7 percent); Santa Clara County, CA, in the San Jose metro area (3.8 percent); San Mateo County, CA, in the San Francisco metro area (3.8 percent); San Francisco County, CA (3.9 percent) and Maui County, HI (3.9 percent).
The 2021 SFR market analysis identified 61 “SFR Growth” counties where average wages grew over the past year and the potential 2021 annual gross rental yields are 10 percent or higher. The reported noted the 61 SFR Growth markets include Milwaukee County, WI; Shelby County (Memphis), TN; Monroe County (Rochester), NY; Jefferson County (Birmingham), AL; and Baltimore City/County, MD.
In this post, we dig deep into the data behind the 2021 ATTOM SFR market report to reveal the top 10 “SFR Growth” counties with the greatest annual increases in rental returns, among those counties where average wages grew over the past year and the potential 2021 annual gross rental yields were above 10 percent. Those counties include Calcasieu County, LA (29.7 percent increase from 2020); Erie County, PA (13.4 percent increase); Licking County, OH (13.3 percent increase); Delaware County, IN (12.7 percent increase); Tazewell County, IL (12.2 percent increase); Lorain County, OH (12.0 percent increase); Wichita County, TX (10.9 percent increase); Clark County, IN (7.4 percent increase); Bibb County, GA (5.8 percent increase); and Miami County, OH (4.2 percent increase).
ATTOM’s 2021 SFR market report noted that with home prices rising faster than rents in most of the country, home ownership may become even less affordable, placing upward pressure on rents.
According to the analysis, single-family home prices are rising faster than rents in 86.9 percent of the counties analyzed, including Los Angeles County, CA; Cook County (Chicago), IL; Harris County (Houston), TX; Maricopa County (Phoenix), AZ and San Diego County, CA.
The report also noted that rents rose faster than single-family home prices in 13.1 percent of the counties analyzed, including Duval County (Jacksonville), FL; San Francisco County, CA; San Mateo County, CA, in the San Francisco metro area; Fort Bend County, TX, in the Houston metro area and Kane County, IL, in the Chicago metro area.
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