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Chart of the Day: History of Rental Rates

Line graph showing Cap rates on single-family rental property from 1950 to present.

Contents

Today’s Chart of the Day comes from re:venture, a provider of real estate market data. The chart highlights single-family rental capitalization (cap) rates dating back to 1950.
 
The cap rate represents the net annual return on a real estate investment after expenses. For example, a 5% cap rate means a $100,000 investment would yield $5,000 per year.
 
Currently, cap rates sit at 4.7%, up slightly from a recent low of 4.4% due to falling property prices. However, both figures remain below the recent average of 6%, continuing a long-term decline from the 8–9% rates seen in the mid-20th century.