Rental Home Construction Hit Record in ’22

The number of single-family homes being built specifically for the rental market nationwide reached 14,500 last year—an all-time record, and up 47 percent from 2021.

That’s according to a new report on the Web site RentCafe, drawing on statistics from Yardi Matrix, a real-estate data specialist.

Investors are flocking to the concept of single-family rentals, in addition to multifamily projects, and nearly 45,000 more of those build-to-rent homes are under construction, the data show.

According to the National Association of Homebuilders, build-to-rent “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.”

Industry analysts say the increase in interest rates, which has added hundreds of dollars in costs to the typical monthly mortgage payment, have persuaded potential buyers to seek out rentals, rather than home ownership.

You can read the full analysis here.

Posted June 6, 2023