flexiblefullpage - default
Currently Reading

Single-Family Built-For-Rent Starts Surge in Q2 2022

Advertisement
billboard - default
Build to Rent

Single-Family Built-For-Rent Starts Surge in Q2 2022

As would-be buyers pull out of home purchases and seek out more affordable housing options, the single-family built-for-rent (SFBFR) market is booming


August 17, 2022
Single-family housing starts framed
Image: Stock.adobe.com

The single-family built-for-rent (SFBFR) market posted strong gains throughout the second quarter of 2022, even as affordability concerns posed significant challenges for new buyers and renters. NAHB’s analysis of data from the Census Bureau’s Quarterly Starts and Completions by Purpose and Design revealed a 91% year-over-year gain in SFBFR starts with a total of 21,000 in Q2 2022 alone, Eye on Housing reports.

A booming SFBFR market is indicative of a slowdown in home sales despite strong demand from would-be buyers. Rather than settling for higher borrowing costs and hefty down payments, buyers are instead turning to the rental market to find single-family homes with less commitment and greater affordability. 

Over the last four quarters, 69,000 such homes began construction, which is a 60% increase compared to the 43,000 estimated SFBFR starts in the prior four quarters.

With the onset of the Great Recession and declines in the homeownership rate, the share of built-for-rent homes increased in the years after the recession. While the market share of SFBFR homes is small, it has clearly been trending higher. As more households seek lower density neighborhoods and single-family residences, a growing number will do so from the perspective of renting. This will be particularly true as mortgage interest rates remain elevated and increase. Thus, the SFBFR market will expand in the quarters ahead.

Read more

Related Stories

Affordability

As Housing Costs Outpace Income Growth, the Typical U.S. Renter Is Now Rent-Burdened

Renters across the U.S. spend 30% of median income on monthly payments as housing costs continue to reach new highs

Market Data + Trends

Homeownership Survey Results: Adapt Your Strategy for Shifting Consumer Sentiment

A recent survey about homeownership finds that while consumers believe in homeownership, many think now is not the right time to buy

Affordability

New York City Faces Escalating Housing Crisis as Thousands Fall Behind on Rent

The New York City Housing Authority collected its lowest share of rent payments on record in 2022, and as housing costs continue to soar, the agency faces a dire financial crisis

Advertisement
boombox1 -
Advertisement
native1 - default
halfpage2 -

More in Category




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.