flexiblefullpage - default
Currently Reading

Single-Family Built-for-Rent Projects Continue to Increase

Advertisement
billboard - default
Build to Rent

Single-Family Built-for-Rent Projects Continue to Increase


August 19, 2021
house construction
Photo: marls | stock.adobe.com

As demand for single-family homes continues but affordability challenges emerge, developers and builders are increasing construction for single-family built-for-rent projects. An analysis of the Census Bureau’s Quarterly Starts and Completions by Purpose and Design by the National Association of Home Builders found there were 10,000 single-family built-for-rent starts during the second quarter of 2021. For the past four quarters, that’s a total of 42,000 starts for this sector, an 8% increase compared to the prior four quarters. Built-for-rent projects are one way to add inventory as demand outpaces supply in the for-sale market.

Given the 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 (3.7%) remains higher than the historical average of 2.7% (1992-2012) but is down from the 5.8% reading registered at the start of 2013.

Importantly, as measured for this analysis, the estimates noted above only include homes built and held by the builder for rental purposes. Those estimates exclude homes that are sold to another party for rental purposes, which NAHB estimates may represent another two or three percent of single-family starts. Indeed, the Census data notes a notable jump in single-family homes built as condos (non-fee simple) in the second quarter, with this share standing at 5.3%. Many of these homes will be used for rental purposes.

Read More
 

Advertisement
leaderboard2 - default

Related Stories

Build to Rent

Why the Boom in Rental Apartment Construction Isn't Helping Affordability

A rental apartment construction boom isn't enough to resolve the growing affordability crisis, especially when most of those units are high-end and aren't located where housing is most needed

Housing Markets

Renting Still More Affordable Than Buying in Most US Metros

In all but three of the nation's 50 largest metro areas, renting remains more cost-effective than buying a home

Housing Markets

Rents Fall the Most in These Former Pandemic Hotspots

Rental prices are falling the most in these previously red-hot metro areas

Advertisement
boombox1 -
Advertisement
native1 - default
halfpage2 -

More in Category

COVID-19 may be easing its grip on the U.S. after a disastrous two years, but lingering supply chain disruptions have builders holding onto their pandemic business tactics

An archive of NHQA-winning companies that represent home building's best in Total Quality Management

Don’t let the current hype about single-family B2R communities obscure the need to create long-term sustainability and asset value

Advertisement
native2 - default
Advertisement
halfpage1 -

Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.


Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Subscribe
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.