With solid property fundamentals and plenty of potential demand, both institutional and high-net-worth investors have been working with firms that specialize in BTRs.

The “denominator effect” put institutions in a position where real estate allocations exceeded target levels, but observers expect that issue has begun to resolve itself as values of other investments have recovered.

Third-party surveys are often relied on for valuation purposes; however, one must be cautious in their use when actual trades in the public market are confirming a value that is substantially different.