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Build to Rent

10 Challenges Facing the Build-to-Rent Sector

There are a number of challenges B2R operators are dealing with, such as the slower pace of construction and figuring out the best areas to buy land

July 12, 2024

While it is gaining in popularity among renters, there are still a number of hurdles the B2R sector is facing.

Image: Andy Dean / stock.adobe.com

Single-family build-to-rent (B2R) communities are growing in popularity due to the high costs associated with purchasing a home. However, while many families are opting to rent rather than buy, the B2R segment is not without its challenges, according to Multi-Housing News. From staffing issues to flatter rent growth, there are a number of challenges B2R operators are facing.

Although rent growth in the SFR and BTR space has outpaced traditional multifamily over the past 12 months, Jeremy Edmiston, executive director and U.S. lead for Build-to-Rent/Single-Family Rental at Cushman & Wakefield, said that new supply in various markets is causing rents to flatten a bit. Demand is favorable, but absorption rates have trailed off slightly in higher supplied markets.

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Build to Rent

Single-Family Homes