SINGLE-FAMILY RENTALS SHADOW APARTMENTS
The effect of single family rentals on apartment rents has varied widely across the country. The size of the pool of single family homes and condominiums in relation to the number of apartment units is a major factor in the relationship.
In some markets, such as Miami and Phoenix the “shadow market� (i.e.the number of houses and
condominiums being offered for rent is so large relative to the number of apartment units that it
results in reductions in the apartment rents.
Contrast that effect with cities like New York and San Francisco with high barriers to development
and housing shortages and the impact of slowing home sales on apartment rents is minimal or
non-existent.
Where any area falls between thes two extremes depends on the number of houses and
condominiums offered for rent compared to the number of apartments in the area.
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