How do homes that are built to rent differ from traditional for-sale single family homes? The National Association of Home Builders analyzed Census data to find out.
Second quarter data for 2019 reveal that approximately 42,000 homes were built-for-rent over the last year, representing about 5% of single-family construction. Though this figure continues to trend modestly higher as affordability headwinds generate demand for rental housing, the share of built-for-rent single-family homes remains a small percentage of the overall market.
NAHB analysis of Census data finds the following differences between for-sale and new single-family homes built-for-rent (SFBFR):
- SFBFR are typically smaller with fewer bedrooms and bathrooms.
- SFBFR are more likely to be a single-story building.
- SFBFR are seven times more likely to be a townhouse (single-family attached).
- SFBFR are more likely to be located on a smaller lot.
- SFBFR are almost all wood-framed.
- SFBFR are more likely to have a vinyl siding exterior and less likely to have stucco.
- SFBFR are more likely to have a one-car garage or no garage.
- The highest share and count of SFBFR construction is found in the West South Central Census division (Texas, Oklahoma, Arkansas and Louisiana).
- Although a small share of the total, SFBFR are more likely to be age-restricted.
- SFBFR are more likely to have a smaller construction permit value but have many units with permit values above $300,000.
- Average construction time is slightly longer for SFBFR homes.
Advertisement
Related Stories
Affordability
How Much Income Do First-Time Buyers Need to Afford the Average Home?
The median-priced home is unaffordable in 44 of the 50 largest U.S. metro areas
Affordability
What Is the Relationship Between Urban vs. Suburban Development and Affordability?
A new paper from Harvard's Joint Center looks at whether expanding the supply of suburban housing could, in turn, help make dense urban areas more affordable
Market Data + Trends
10 States Where Home Insurance Rates Have Risen the Most
Responding to the increasing number of natural disasters, insurers are hiking prices, with some states bearing the brunt more than others