More Single-Family Built-for-Rent Homes Are Under Construction in the U.S.
In the first quarter of 2024, construction commenced on approximately 18,000 single-family built-for-rent homes, marking a notable 20% increase compared to the same period in 2023, as reported by the National Association of Home Builders. This rise in single-family rentals is seen as a direct response to the ongoing housing affordability crisis, according to real estate experts. For those seeking more living space but facing financial constraints that prevent home ownership, exploring rental options could offer a viable solution.
According to MSN, construction began on about 18,000 single-family, built-for-rent homes in the first quarter of 2024, a 20% jump compared with the first quarter of 2023, according to NAHB, which analyzed data from the U.S. Census Bureau’s Quarterly Starts and Completions by Purpose and Design.
“People need somewhere to live, and they have a choice to make,” said Molly Boesel, principal economist at CoreLogic, a real estate data firm.
“And if they can’t find what they need in the for-sale market, they’re going to go to the rental market,” she said.
‘We are seeing this growing move’
As a share of all housing starts, single-family built-for-rent starts grew to 10% in 2023 from 5% in 2021, almost doubling in two years, according to the National Association of Realtors, which analyzed data from the Survey of Construction Data by the U.S. Census Bureau.