The U.S. single-family built-to-rent (BTR) market continues to expand as high home prices, limited housing inventory, and elevated mortgage rates push more Americans toward renting.
According to the National Association of Home Builders, construction began on approximately 18,000 single-family built-to-rent homes in the first quarter of 2024, a 20% increase from the same period a year earlier. In 2023, BTR homes represented about 10% of all single-family housing starts, nearly double their share in 2021.
The growth reflects a widening gap between what many households want and what they can afford to purchase. With mortgage rates remaining elevated and for-sale inventory constrained, renters are increasingly looking for single-family homes that offer more space and privacy than traditional multifamily options.
Demand is also growing among renters in their 30s and 40s who may prefer a detached home but are delaying homeownership because of affordability challenges. This has created a stronger market for purpose-built rental communities.
As housing costs continue to shape consumer decisions, the expansion of BTR demonstrates how developers are responding to changing housing needs. For the SFR and BTR sectors, continued renter demand could support further development of purpose-built single-family rental communities across the U.S.
Source: CNBC
