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Despite Slow Growth in Q3 2022, the Single-Family Built-For-Rent Market Is Expanding

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Build to Rent

Despite Slow Growth in Q3 2022, the Single-Family Built-For-Rent Market Is Expanding

Single-family built-for-rent (SFBFR) construction tapered off in Q3 2022 after an exceptionally strong second quarter, but the market segment is steadily growing

November 18, 2022
Red and white 'for rent' sign on residential lawn
Image: Stock.adobe.com

Single-family built-for-rent construction leveled off during the third quarter of 2022 after a 42% increase over the last four quarters. Builders added approximately 16,000 single-family built-for-rent (SFBFR) starts during Q3 2022, a rate 6% lower than the Q3 2021 total, NAHB Eye on Housing reports. 

The market share of SFBFR homes is small, but new-construction starts are on the rise as prospective homebuyers are pushed into the rental market by fast-rising mortgage rates and record home price appreciation.

Given the relatively small size of this market segment, the quarter-to-quarter movements typically are not statistically significant. The current four-quarter moving average of market share (6%) is nonetheless higher than the historical average of 2.7% (1992-2012) and sets a data series high as this submarket expands.

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