Built-for-rent gains steam
Single-family homes that were built-for-rent have been gaining momentum over the last four quarters, according to the National Association of Home Builders (NAHB).
In a report from Robert Dietz, NAHB chief economist, he cites 43,000 construction starts for built-for-rent homes. This marks more than a 33% increase from the 33,000 built-for-rent starts in the prior four quarters. And in the third quarter of 2018, there were 12,000 single-family built-for-rent starts.
The market share of single-family homes built-for-rent, as measured on a one-year moving average, stood at 4.8% of single-family starts as of the third quarter of 2018, according to the Census Bureau’s Quarterly Starts and Completions by Purpose and Design report and NAHB analysis.
However, given the small size of the market segment, the quarter-to-quarter movements are not typically statistically significant, Dietz said. The current market share remains higher than the recent historical average of 2.7% from 1992 to 2012 but is down from the 5.8% reading registered at the start of 2013.
This class of single-family construction does not include homes that are sold to another party for rental purposes and only includes homes built and held specifically for rental purposes.
The built-for-rent share of single-family homes is considerably smaller than the single-family home portion of the rental housing stock, which is 35% according to the 2015 American Community Survey. As homes age, they are more likely to be rented, Dietz said.
From 2005 to 2015, 56% of the gains in the rental housing stock were due to increases of for-rent single-family homes.
In a report from Robert Dietz, NAHB chief economist, he cites 43,000 construction starts for built-for-rent homes. This marks more than a 33% increase from the 33,000 built-for-rent starts in the prior four quarters. And in the third quarter of 2018, there were 12,000 single-family built-for-rent starts.
The market share of single-family homes built-for-rent, as measured on a one-year moving average, stood at 4.8% of single-family starts as of the third quarter of 2018, according to the Census Bureau’s Quarterly Starts and Completions by Purpose and Design report and NAHB analysis.
However, given the small size of the market segment, the quarter-to-quarter movements are not typically statistically significant, Dietz said. The current market share remains higher than the recent historical average of 2.7% from 1992 to 2012 but is down from the 5.8% reading registered at the start of 2013.
This class of single-family construction does not include homes that are sold to another party for rental purposes and only includes homes built and held specifically for rental purposes.
The built-for-rent share of single-family homes is considerably smaller than the single-family home portion of the rental housing stock, which is 35% according to the 2015 American Community Survey. As homes age, they are more likely to be rented, Dietz said.
From 2005 to 2015, 56% of the gains in the rental housing stock were due to increases of for-rent single-family homes.