flexiblefullpage - default
Currently Reading

Built-For-Rent Market Expected to Ease in 2023, but Another Boom Is Likely in 2024, Experts Say

billboard - default
Build to Rent

Built-For-Rent Market Expected to Ease in 2023, but Another Boom Is Likely in 2024, Experts Say

The built-for-rent (BFR) market grew exponentially throughout the pandemic, but as demand cools amid fears of a 2023 recession, BFR developers are pulling back

January 19, 2023
Row of colorful single-family houses
Image: Stock.adobe.com

For the past several years, investors have flooded the built-for-rent (BFR) market as priced-out would-be homebuyers made their way into the rental sector for more affordable housing options, but according to Forbes, many now fear that this booming segment is becoming too crowded. While rent growth is still in the range of 8%-10% gains on a year-over-year basis, slower demand due to rising inflation and recession fears could lead to a sharp slowdown of rent growth in 2023.

The long-term outlook for 2024 and beyond reveals yet another BFR boom, especially as more Millennials seek out family-friendly housing options during a period of slower income growth while the economy softens.

Income growth is not going to stay at 11%-12% in 2023/2024 perhaps, but 8%-10% earnings growth is not unreasonable for people in their 30s to expect. That will support rent growth at single-family rental communities. A recent analysis by RealPage showed that market-rate renters are currently only spending 23% of their income on rent, which is well below the 30-33% that is considered a ceiling. There seems to be room to run, at least after the economy gets past this slump and demand starts roaring again.

Read more

Related Stories

Housing Policy + Finance

The Downside of Rent-Control Measures

If implemented, housing experts say rent-control measures could actually discourage investment and development in the rental housing sector, contributing to the affordability crisis


Dakota Partners Provides Affordable Housing Through Homeless Prevention Response Fund Grant

The $1.27 million grant will be used to house formerly homeless residents at the Columbus Commons apartments in New Britain, Conn.

Housing Policy + Finance

Rent Control Policies Gain Traction—Economists Say They’re a Bad Idea

Support for rent control policies is building amid an ever-growing affordability crisis, but economists worry that if implemented, they could deter new housing development

boombox1 -
native1 - default
halfpage2 -

More in Category

native2 - default
halfpage1 -

Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.

Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.