As housing has become more expensive, the production of single-family build-to-rent (SFB2R) properties has become increasingly common. According to the National Association of Home Builders’ Eye On Housing blog, SFB2R construction grew year-over-year. During Q3 2024, there were 24,000 SFB2R starts, up 41% from the previous year. Additionally, over the last four quarters, 92,000 SFB2R homes began construction, compared with 70,000 estimated SFB2R starts in the four quarters prior to that.
The SFBFR market is a source of inventory amid challenges over housing affordability and downpayment requirements in the for-sale market, particularly during a period when a growing number of people want more space and a single-family structure. Single-family built-for-rent construction differs in terms of structural characteristics compared to other newly-built single-family homes, particularly with respect to home size. However, investor demand for single-family homes, both existing and new, has cooled with higher interest rates. Nonetheless, builders continue to build projects of built-for-rent homes for their own operation. Read more