The single-family build-to-rent (SFB2R) market is starting the year strong. With occupancy levels at 95% and 110,727 SFB2R units currently under construction across the U.S., existing build-to-rent inventory is expected to increase by more than 50% as projects are completed. According to a recent report from rental market research platform Point2Homes, five states lead new single-family rental construction. At 21,812 and 13,972 single-family homes, Texas and Arizona lead the way with the most SFB2R homes in the pipeline. Florida, North Carolina, and Georgia are also seeing more SFB2R properties start construction compared with other states.
Typically, coastal states — and especially the urban hubs where the booming business, tech and financial sectors are concentrated — attract higher numbers of people looking for jobs and business opportunities. This creates extremely high-density, localized hotspots that become narrow epicenters of demand and, naturally, supply.
So, it’s interesting to see that developers are starting to extend their focus beyond jam-packed areas like the central business districts and even the first ring of suburbia in order to create communities where living space is no longer a challenge. Of course, the pandemic created both the need and the conditions for more spacious rentals, and developers jumped at the opportunity to build bigger house rentals — managing to tick the affordability box by extending further in the metro. Read more
