During the third quarter of 2021, single-family built-for-rent construction starts reached a new quarterly high with 16,000 projects breaking ground, says the NAHB’s Eye on Housing. Over the last four quarters, 47,000 single-family homes began construction for rental purposes. Though the single-family built-for-rent (SFBFR) market is small, its quarterly average is reaching record numbers, and more growth is expected in the quarters ahead.
The number of single-family built-for-rent (SFBFR) construction starts reached its highest quarterly volume on record during the third quarter of 2021. The SFBFR market is a way to add inventory amid concerns over housing affordability and down payment requirements in the for-sale market, particularly during a period when a growing number of people want more space and a single-family structure. Single-family built-for-rent construction differs in terms of structural characteristics compared to other newly-built single-family homes, particularly with respect to home size.
According to NAHB’s analysis of data from the Census Bureau’s Quarterly Starts and Completions by Purpose and Design, there were approximately 16,000 single-family built-for-rent starts during the third quarter of 2021. Over the last four quarters, 47,000 such homes began construction, which is a 17.5% gain compared to the 40,000 estimated SFBFR starts for the four prior quarters.