flexiblefullpage - default
Currently Reading

Demand for Single-Family Rentals Presents Opportunities for Builders

billboard - default

Demand for Single-Family Rentals Presents Opportunities for Builders

August 14, 2020
Single-family suburban home
By Iriana Shiyan

Single-family rentals are poised to become severely undersupplied over the next decade, presenting a great opportunity for builders. RCLCO Real Estate Advisors says the current supply and future supply of single-family rentals is not fit to meet the increasing demand. Over the next 10 years, single-family rentals are predicted to grow by 700,000 units. Large investors, such as Tricon Residential, are seizing the opportunity by expanding their single-family rental ownership. Brookfield Asset Management recently acquired a controlling stake in a single-family landlord company, and leading single-family landlord Invitation Homes came out of its booming second quarter with a thirst for 80,000 more homes.

Since the recovery from the Great Recession the single-family rental market has evolved from individual units owned and rented out by small investors, to large investors acquiring significant portfolios of scattered units, to building new units specifically for rent, creating entire communities of single-family rentals with professional management. Build-to-rent homes are not a single product, for while they include suburban style single-family homes, they also include single story detached apartment style units, or horizontal apartments, small lot single-family homes, and even duplexes and row homes.

Following the Great Recession, the share of single-family rental homes expanded substantially as a result of excesses in the for-sale market, and several million additional households became single-family renters, moving into the large vacant stock of newly foreclosed single-family homes. Many of those vacant units were purchased by private-equity groups and other investors, helping to stabilize the housing market. Institutional investors had entered a market previously dominated by small mom and pop investors and found it to be an attractive and growing market.

Read More

Related Stories

Labor + Trade Relations

Construction Employment Increased in 45 States in February

Construction jobs are on the rise nationwide, but understaffed construction firms continue struggling to keep up with project backlogs

Land Planning

A Lack of Vacant Land Is Leading to a Rise in Teardowns

In states where inventory is low and vacant land is scarce, builders are tearing down existing homes and starting from scratch

New-Construction Projects

A Near Record Number of Housing Units Are Under Construction, but They’re Taking Longer to Complete

Single-family housing starts are rising, but supply-chain delays are pushing back completions

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.