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