Built-for-Rent Housing Starts Continue to Increase

By Jessica Lautz
The National Association of Realtors
June 3, 2024
Category: Finance & Economics
Region: United States

There is no question that the housing market is in a gridlock, with homeowners unable or unwilling to move due to low-interest rate mortgages. The need for new construction is one solution to this problem, which could alleviate the housing inventory crisis. At the same time, there is a shortage of inventory, and home prices have jumped, even in a high-interest rate environment, making the dream of homeownership completely out of reach for many. First-time buyers are now in their mid-to-late 30s when they purchase their first property. …So, what happens to those who cannot reach homeownership today? Home builders have seen this data and seen, in turn, an opportunity: built-for-rent. Built-for-rent is the concept of new single-family home construction for the intent of renting. While there has been growth in new home sales and construction activity, multifamily home construction has also grown in recent years.

Read More