Nation’s Largest Landlords and Builders Team Up to Create More Rental Housing
Built-for-rent homes account for just 5% of the home building market nationwide despite fast-rising demand for single-family rentals, motivating some landlords to take matters into their own hands. Investment in the build-for-rent market has grown exponentially since 2020, led by the nation’s largest homebuilders and publicly traded landlords like builder Pulte Homes and leasing company Invitation Homes, which entered into a joint venture last year to build more rental homes.
Tightening supply amid surging demand also means that rents are rising at a steady pace across the U.S., particularly in popular markets welcoming an influx of remote workers. Single-family rents are up by more than 13% year-over-year, a metric likely to keep rising without a major boost in supply, CNBC reports.
Investment in single-family rentals – both buying older homes and building new ones – has grown dramatically. The sector saw investments of about $3 billion in 2020, according to John Burns Real Estate Consulting. In 2021, the figure surged to $30 billion. It’s expected to reach $50 billion this year as larger institutional investors, homebuilders, and landlord rush into the market.