According to a report by Morgan
Stanley, the buy-to-rent ( investor ) market is only a fraction of where it could be,
and the market is ready for major growth in the coming years.
Morgan Stanley analysts predict that the buy-to-rent market will grow
from $17 billion today to more than $100 billion in the next several
years. They called it a “sustainable business with a long runway for
growth.”
According to analysts, institutional investors may be able to
anticipate a more than 10 percent return on investments, as rents
nationwide continue to rise.
"Over the past three years, investor activity has removed significant
amounts of distressed supply from Southern California, Phoenix and Las
Vegas," according to the report. "Consequently, select MSAs in Florida,
the Midwest and the Northeast now constitute a greater proportion of the
nation’s distressed properties, making them potentially more attractive
to institutional buy-to-rent investors."
Source: “Morgan Stanley predicts buy-to-rent boom,” HousingWire (July 31, 2013)