Single-family homes have the widest market appeal. In a softening marketplace, real estate that houses jobs (retail, office, etc.) will generally show rental weakness before the real estate that houses people (single family homes). Changes in job indicators give investors in single-family homes opportunities to re-position faster than investors in commercial property can.
Single-family homes have lower rates of vacancy (downtime) than commercial property because there are more potential renters for a single family home than there are for a gas station or a big box store. Single family homes have the most attractive financing terms available. Single family homes will never become technologically obsolete. What technology could replace the need and desire for a place with four walls and a roof where humans sleep at night?