As builders aim to meet the growing demand for rental housing, the construction of single-family build-to-rent (B2R) homes increased in Q2 2024. According to the National Association of Home Builders’ Eye On Housing blog, there were approximately 23,000 B2R home starts during this time, which is nearly 10% more than the same period in 2023. Over the past year, 83,000 such homes were started, compared with 69,000 starts last year.
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.
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