The single-family rental (SFR) market has transformed from an opportunistic trade into a resilient, professionally managed sector of the U.S. housing market, influenced by affordability challenges, capital restrictions, and the demand for new housing stock. Few individuals have had a closer perspective on this evolution than Tim Reilly, Executive Vice President of Radian Real Estate Management LLC, with over 30 years of experience in mortgage and real estate services and a reputation as a pioneer in institutional SFR. In this interview, Reilly discusses the pivotal moments that reshaped SFR and build-to-rent (BTR), the significance of independent diligence and valuation in establishing institutional trust, and how discipline, transparency, and technology may shape the future of residential real estate.
HousingWire: What significant developments over the last two decades in SFR and BTR prompted you to reconsider the framework of solutions that support them?
Tim Reilly: The emergence of the single-family rental sector stemmed from the aftermath of the Great Financial Crisis when large investors started purchasing distressed properties in a market with limited buyers. Over time, this evolved into a distinct asset class with the introduction of the first single-borrower, single family rental capital markets offering known as IH-2013-1. Today, institutional SFR owners represent less than 2%-3% of the housing market nationally, owning fewer than 1 million homes out of over 14 million rental properties across the country. These properties have become essential components of the housing landscape, providing professionally managed detached housing options and addressing housing affordability challenges. The primary issues facing the housing market include restricted access to capital for first-time homebuyers or those with credit issues, and inadequate supply, all contributing to affordability pressures. The Urban Institute’s research report highlighted that the chronic undersupply of single-family homes is the root cause of high home prices and rents.
Recent trends have shown a shift towards build-to-rent over the past 18 to 24 months, indicating a focus on stakeholders in the SFR sector adding new housing inventory rather than acquiring existing properties. Single-family rentals are increasingly catering to households seeking housing options but not yet prepared to buy, such as millennials facing financial constraints. Renting a single-family home can be more cost-effective than owning, offering flexibility and professional property management. From a pragmatic standpoint, SFR and BTR could be seen as part of a broader housing solution that enhances choice and supply rather than competing with homeownership.
HW: As a prominent player in institutional SFR services, how has third-party validation assisted you and your team in earning trust, leading change, and avoiding complacency?
TR: Given that this is a relatively young asset class, credibility and procedural discipline are essential. Our involvement in the first SFR securitization, Invitation Homes 2013-1, laid the groundwork for our role in supporting various financial products in the sector. Trusted, independent partners with clear processes and controls enable lenders to confidently invest capital in diverse portfolios across different regions.
As the market matured, our role expanded to include advising on pilot programs and educating stakeholders on the diligence and valuation aspects of the asset class. Working closely with rating agencies, we helped them understand the quality of assets, market dynamics, and operational risks as securitizations expanded into new markets. This consistency has positioned us as a reliable service provider to investors, sponsors, lenders, and rating agencies, a role we aim to maintain as other investor-owned products like Debt Service Coverage Ratio and Residential Transition Lending products continue to evolve.
HW: You have emphasized the importance of your team in driving success. How is your team structured today, and how does your team and culture facilitate complex operations at scale?
TR: The business is organized around four core capabilities. Firstly, we offer diligence services for business-purpose lending. Secondly, we collaborate with a team providing a range of valuation solutions compliant with industry standards. Thirdly, the Pyramid Platform, a SaaS-based REO disposition and workflow solution, integrates diligence, valuation access, and a capital markets dashboard for institutional clients. Finally, we provide end-to-end REO servicing supported by a national network of agents, access to buyer agents, and a vendor ecosystem for repairs and inspections.
HW: With RTL and DSCR lending gaining momentum, how are evolving risk profiles influencing your approach to the solutions you offer?
TR: RTL has emerged as a vital tool for revitalizing aging housing stock. As interest rates remain high and inventory scarce, investors are increasingly using capital to renovate older properties, a trend that started on the coasts and has spread nationwide. Once renovated, these homes are either sold or retained as rentals. What was once a niche fix-and-flip market is now becoming institutionalized, with standardized processes, controls, and top-rated securitizations receiving industry approval.
We anticipate a significant role in RTL and DSCR by applying the same rigorous approach used in SFR. DSCR loans cater to smaller investors facing challenges in accessing traditional financing and are based on rental income rather than the investor’s creditworthiness. As rental demand remains strong, these products will likely require reliable third-party validation.
HW: How has the Capital Markets Dashboard addressed challenges and replaced outdated tools that investors and lenders relied on?
TR: Our early involvement in SFR highlighted the technological gaps in the market. The Capital Markets Dashboard, part of Radian REM’s Pyramid Platform, serves as a centralized communication channel where all parties involved in transactions can track progress in real time. Users can order valuations, monitor fulfillment, access reports, and run analytics within the platform.
We applied a similar structure to SFR diligence, streamlining document review, issue resolution, and cure uploads into a transparent, integrated system. This system, developed over a decade, has been embedded directly into the technology.
HW: Looking ahead to 2026, what qualities do you believe will define the next generation of leaders in residential real estate?
TR: Discipline will likely set leaders apart. Successful firms will showcase proven track records, robust controls, enduring relationships, and the ability to leverage technology in emerging markets like RTL and DSCR. As these products are still in the early stages of institutionalization, consistency and transparency will be vital for establishing credibility.
Furthermore, addressing housing affordability remains crucial. Recognizing the role of single-borrower, single-family rentals in expanding housing options will be key. We remain optimistic about this segment’s potential contribution to the housing sector.
© 2026 Radian Group Inc. All Rights Reserved. 550 East Swedesford Road, Suite 350, Wayne, PA 19087. Pyramid Platform and Prop Offers provided by Radian REM LLC. FL License #- CQ1072653. Single family rental services provided by Radian Real Estate Management LLC. Tel: 877.707.1415. Licensed Property Management Company in UT (License # – 9172198-MN00) and NV (License #- ASM.0000217). Both with offices at 6330 South 3000 East, Suite 600, Salt Lake City, UT 84121. Valuation services provided by homegenius Real Estate LLC and homegenius Real Estate Inc. (collectively dba homegenius Real Estate). 6330 South 3000 East, Suite 600, Salt Lake City, UT 84121. Tel: 877-500-1415. homegenius Real Estate LLC and its wholly owned subsidiary are licensed in every state and the District of Columbia. This communication is provided for use by business professionals only and is not intended for distribution to consumers or other third parties. This does not constitute an advertisement as defined by Section 1026.2(a)(2) of Regulation Z.
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