Single-Family Build-to-Rent Activity on the Decline

Single-family built-to-rent (SFB2R) housing has been taking off over the last years, but construction activity declined in Q-2 2025 for that sector alongside broader disruptions in the residential construction market. According to the National Association of Home Builder’s analysis of data from the Census Bureau’s Quarterly Starts and Completions by Purpose and Design, there were approximately 12,000 SFB2R starts during Q-2 2025, less than half of the 25,000 starts reported in Q-2 2024. Over the last four quarters, 71,000 such homes began construction, which is a 16% decrease compared with the 85,000 estimated SFB2R starts in the four quarters prior to that period.

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.