Builders Add Housing Supply Through Single-Family Built-for-Rent Construction

Economics
Published

Single-family built-for-rent (SFBFR) construction posted year-over-year gains as of the second quarter of 2024, as builders sought to add additional rental housing in a market facing ongoing, elevated mortgage interest rates.

According to NAHB’s analysis of data from the Census Bureau’s Quarterly Starts and Completions by Purpose and Design, there were approximately 23,000 single-family built-for-rent (SFBFR) starts during the second quarter of 2024. This is almost 10% higher than the second quarter of 2023. Over the last four quarters, 83,000 such homes began construction, which is a more than 20% increase compared to the 69,000 estimated SFBFR starts in the four quarters prior to that period.

Given the relatively small size of this market segment, the quarter-to-quarter movements typically are not statistically significant. The current four-quarter moving average of market share (8%) is nonetheless higher than the historical average of 2.7% (1992-2012).

Importantly, as measured for this analysis, the estimates noted include only homes built and held by the builder for rental purposes. The estimates exclude homes that are sold to another party for rental purposes, which NAHB estimates may represent another 3% to 5% of single-family starts based on industry surveys.

The SFBFR market is a source of inventory amid challenges 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.

NAHB Chief Economist Dr. Robert Dietz provides more details in this Eye on Housing post.

Subscribe to NAHBNow

Log in or create account to subscribe to notifications of new posts.

Log in to subscribe

Latest from NAHBNow

Economics

Sep 05, 2025

Mortgage Rates Hit 10-Month Low in August

Average mortgage rates in August continued their steady decline and are now at their lowest rate since last November. But rates are still higher year over year.

Economics | Land Development

Sep 04, 2025

Home Building Lot Shortage Continues

Although lot shortages are not quite as widespread as they were in 2021, obtaining lots remains a challenge for many home builders, according to recent results from the NAHB/Wells Fargo Housing Market Index (HMI) survey.

View all

Latest Economic News

Economics

Sep 05, 2025

Job Growth Slowed in August

Job growth slowed sharply in August, and the unemployment rate rose to its highest level in nearly four years.

Economics

Sep 04, 2025

Lots Still in Relatively Short Supply

Although shortages are not quite as widespread as they were in 2021, obtaining lots remains a challenge for many builders, according to recent results from the NAHB/Wells Fargo Housing Market Index (HMI) survey.

Economics

Sep 04, 2025

HVAC in New Construction in 2024

Almost all of new single-family homes started in 2024 used either an air/ground source heat pump or a forced air system for the primary heating equipment (97%), according to the Census’s Survey of Construction. Additionally, 20% percent of homes also used a secondary type of heating equipment.