Single-Family Build-to-Rent Market Holds Steady

The single-family build-to-rent market (SFB2R) maintained stable footing in November, with occupancy rates remaining high and rents edging down just slightly. According to a report from online rental market platform Point2Homes, occupancy rates remained unchanged at 95% and rental rates declined by just 0.5% from the previous month to $2,185 in November.

Some markets recorded occupancy rates above the nationwide benchmark

While the national occupancy rate was relatively high at 95%, some housing markets recorded even higher rates. In Miami, for instance, the SFB2R occupancy rate was 98%, and in Chicago, Indianapolis, and Grand Rapids, Mich., it was over 97%.

Rent dips in some markets create appealing conditions for renters

As home prices remain out of reach for many, declining rental rates in the SFB2R is a good sign for would-be buyers. While national rents averaged $2,185 in November, 17 markets posted asking rent prices below this mark, especially more affordable Southern metros. Pensacola, Fla., for instance, saw rents decline by 2.5%, and in Charleston, S.C. and Austin, Texas, rents dipped by a respective 3.8% and 3.9% year-over-year.

Meanwhile, the Midwest saw the steepest rental rate increases. The Twin Cities and Chicago both saw rents grow by 7.9% year-over-year, followed by Grand Rapids, Mich., at 4.9% and Kansas City at 3.3%.