An Introduction to Different Real Estate Sectors

​The Information Management Network (IMN) was established more than three decades ago to innovate real estate conferences. An executive team with over 15 years of industry experience works to achieve high-quality experiences for the real estate community. The organization hosts conferences for various real estate specialties, from single-family rentals (SFR) to distressed properties.

SFR is the nation’s second-largest rental housing type, with an estimated 14 million households. However, the number of SFR properties in America has decreased in five of the past six years. A decrease in households, however, has not deterred investor activity. A trend of single-family renters living in attached single-family homes has also influenced the market.

The number of American renters has increased in the past five years. Attached single-family homes now account for roughly one in five SFR households. The nation’s SFR market has demonstrated positive growth throughout 2024. March 2024 had a 3.4-percent year-over-year SFR increase, according to the Single-Family Rent Index from CoreLogic, a property data and services provider.

SFR properties should not be confused with multifamily or residential properties with two or more housing units. A duplex, for example, is a standard residential home modified into two independent living areas for two separate families. Apartment complexes are large buildings with many individual units. Townhouses and semi-detached houses are further examples of multifamily housing.

Multifamily housing is in high demand in the United States due to its various financial advantages. Renters interested in multifamily properties must contend with America’s housing crisis. Years of surging rent and other economic factors have dramatically increased multifamily rental costs. In 2022, half of US renters were cost-burdened, meaning renters spent at least 30 percent of their monthly income on housing costs. The average rent for an apartment in America increased from less than $900 monthly for a one-bedroom in 2017 to $1,149 at the end of 2023. Apartments in residential buildings with five or more units are the largest rental housing type in the country. Close to 40 percent of renters lived in an apartment in a large multifamily building in 2022.

Not all real estate categories are defined by the structure. Distressed property, for example, is about to be foreclosed on or has already come under the control of a financial institution. Mortgage lenders can assume control of a distressed property. Many real estate investors prioritize such properties, which they can acquire at significantly reduced prices. Investors can rehabilitate commercial spaces or renovate distressed single-family homes and sell them for a profit.

Other types of real estate describe how or why the property was developed. Build-to-rent (BTR) is a relatively new trend in the rental housing market. These developments combine the advantages of single-family rentals and gated communities, resulting in a professionally managed community of single-family rental homes outfitted with numerous amenities. Approximately 97,000 BTR residences were completed in 2023, a 45 percent increase from 2023.

These are only a few of the real estate categories at IMN. Real estate professionals can visit imn.org to learn more about real estate funds, family office and capital raising, residential mortgages, and more.

Maria Stamolis

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