The Future of Housing Could Be Built-for-Rent, Four-Bedroom Homes

As the demand for more space continues, it may be time to say goodbye to a focus on three-bedroom new construction and hello to four- and five-bedroom rental homes. CEO of Kinloch Partners, a privately held real estate investment partnership, writes in Forbes that this trend toward more space will be long-term and builders need to monitor it. Pair that with the Millennial generation now at homebuyer age, in addition to holding the highest share of student debt in the country, and you have a perfect recipe for a growing demand in built-for-rent, four- and five-bedroom homes. 

However, since millennials hold a large share of the United States’ $1.6 trillion in student debt, new home purchases are often out of reach. The desire to build a family leads to an interest in a bigger home, but their student debt often keeps this from happening, driving more millennials to seek four-bedroom rental houses when homeownership remains out of reach.

Another significant factor driving demand for four-bedroom homes is that household sizes are actually going up for the first time in 160 years. According to an October 2019 Pew Research study, household size had grown from an average of 2.58 people in 2010 to 2.63 people in 2018.

How have builders responded? Many include rooms designed to be used as a home office. Some are adding a fourth or fifth bedroom that can be converted into an office or study space.

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