Many people who want to purchase a home are unable to do so: Not enough for a down payment, poor credit, or both, are preventing them from getting a mortgage. This problem of wanting a single-family home but being unable to afford one is leading to the growth of one possible solution: built-for-rent single-family homes.
Over the past year, the total number of single-family homes built-for-rent has grown, although it still makes up a very small portion of overall single-family development.
As NAHB’s Eye on Housing blog reports, the market share of single-family homes built-for-rent measured on a one-year moving average was at 4.3 percent of total starts for the first quarter of 2016. While the current market share is higher than the 2.8 percent historical average, it is still lower than the 5.8 percent that was registered at the beginning of 2013. Over the last four quarters, the total number of single-family built-for-rent homes was 32,000.
For the full analysis and to view accompanying graphs, click the link below.
