Some investors raise concerns on rental revenue and occupancy rates, but the sector should be well-positioned over the long term.

The single-family rental (SFR) sector is well-positioned for a rebound once widespread economic activity resumes, according to industry experts.

“In the post-COVID-19 future, I think we will see even more people opt to rent homes instead of buying,” says Doug Brien, CEO and co-founder of Mynd Property Management, a property management firm serving the small residential sector. “In times of financial and healthcare crises, which may become more frequent, people tend to struggle paying their mortgages, making their car payments, etc. Renting is a simpler, more desirable option for many people.”

As with other sectors, single-family rentals will experience a short-term hit, but the market should be positioned for a faster market recovery and will be a better long-term play, according to recent data from John Burns Real Estate Consulting, a consulting and research company. Housing rental defaults will prove painful in the short-term, but the low supply of newly built rental homes in most markets, and capital seeking safety, yield and inflation hedge, should help SFRs recover earlier than other residential real estate asset classes, according to the report.