Single-family homes have outperformed other residential sectors over the past four years as a race for space and stretched homebuyer affordability have supported demand, at the same time as developers have offered bulk discounts in the face of waning home sales. As mortgage rates fall back and affordability improves some of those advantages will fade, but lower operational costs and issues around multifamily regulations mean investor interest will hold up. Overall, we expect single-family total returns to broadly match those of multifamily at just under 9% p.a. over 2025-29, the strongest of all the sectors we cover.
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