At AlbaCore, we focus on the long-term. As one of Europe’s leading alternative credit specialists, we invest in private capital solutions, opportunistic and dislocated credit and structured products. 

Discover more

Specialist in Asia Pacific, Japan, China, India and South East Asia and Global Emerging Market equities.

Discover more

Stewart Investors manage investment portfolios on behalf of our clients over the long term and have held shares in some companies for over 20 years. They launched their first investment strategy in 1988.

Discover more

Our philosophy is very simple. We are constantly searching for high quality businesses and when we acquire them, we will work relentlessly with them to create long-term sustainable value through innovation, ESG-led and proactive asset management.

Discover more

Global Property Securities - US resi 2.0: The expanding renter opportunity

As the renter market in the United States continues to grow, so does the opportunity for investors in a certain type of Real Estate Investment Trust.

Changing demographic and lifestyle preferences of people in their late 20s and early 30s, coupled a lack of a savings among people in this group and rising mortgage rates, points to an expanding renter market in the United States.

People are getting married later – 32 on average compared to 22 years old in the 1970s1. Meanwhile, this next generation of would-be home owners are graduating college with the highest levels of student debt on record2; almost half of millennials having no down payment savings at all, according to the US Census Bureau.

These demographic shifts are set against the backdrop of higher mortgage rates and affordability ratios not seen in 20 years3

This confluence of factors is likely to expand the renter market in the US, which could present an opportunity for investors in single-family residential REITs.

  • Content duration: 3 Mins
  • Content type: Video
  • Content publish date:

Unlike in 2008, when the US residential sector was at the centre of a sub-prime market collapse, investors are now looking to select segments of US housing to capture durable cash flows and sticky tenancies.   

Amid a potentially worsening economic situation, the single family rental category is well positioned to produce reliable earnings. Tenants within the single family rental space have historically been duel income earners with kids in school might be less likely move in light of one job loss or any sort of growing uncertainty within their household picture.  

Further, it’s within this category owner-operators are adopting smart tech, meaning they are able to manage and control their expenses better. This typically includes centralised monitoring stations that allow them to track and real time energy and water usage across their assets and reduce costs.

1 U.S. Census Bureau
NCES – National Center For Education Statistics
National Association of Realtors

Important Information

This material is solely for the attention of institutional, professional, qualified or sophisticated investors and distributors who qualify as qualified purchasers under the Investment Company Act of 1940 and as accredited investors under Rule 501 of SEC Regulation D under the US Securities Act of 1933 (“1933 Act”). It is not to be distributed to the general public, private customers or retail investors in any jurisdiction whatsoever.

This presentation is issued by First Sentier Investors (US) LLC (“FSI”), a member of Mitsubishi UFJ Financial Group, Inc., a global financial group. The information included within this presentation is furnished on a confidential basis and should not be copied, reproduced or redistributed without the prior written consent of FSI or any of its affiliates.

This document is not an offer for sale of funds to US persons (as such term is used in Regulation S promulgated under the 1933 Act). Fund-specific information has been provided to illustrate First Sentier Investors’ expertise in the strategy. Differences between fund-specific constraints or fees and those of a similarly managed mandate would affect performance results. This material is provided for information purposes only and does not constitute a recommendation, a solicitation, an offer, an advice or an invitation to purchase or sell any fund and should in no case be interpreted as such.

Any investment with FSI should form part of a diversified portfolio and be considered a long term investment. Prospective investors should be aware that returns over the short term may not be indicative of potential long term returns. Investors should always seek independent financial advice before making any investment decision. The value of an investment and any income from it may go down as well as up. An investor may not get back the amount invested and past performance information is not a guide to future performance, which is not guaranteed.

Certain statements, estimates, and projections in this document may be forward-looking statements. These forward-looking statements are based upon First Sentier Investors’ current assumptions and beliefs, in light of currently available information, but involve known and unknown risks and uncertainties. Actual actions or results may differ materially from those discussed. Actual returns can be affected by many factors, including, but not limited to, inaccurate assumptions, known or unknown risks and uncertainties and other factors that may cause actual results, performance, or achievements to be materially different. Readers are cautioned not to place undue reliance on these forward-looking statements. There is no certainty that current conditions will last, and First Sentier Investors undertakes no obligation to publicly update any forward-looking statement.


Reference to the names of each company mentioned in this communication is merely for explaining the investment strategy, and should not be construed as investment advice or investment recommendation of those companies.  Companies mentioned herein may or may not form part of the holdings of FSI.

For more information please visit Telephone calls with FSI may be recorded.