Builders Add Housing Supply Through Single-Family Built-for-Rent Construction
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.
Latest from NAHBNow
Land Development | Advocacy
Aug 14, 2026
Key Land-Use and Zoning Provisions in Landmark Housing Law
The newly enacted 21st Century ROAD to Housing Act directs the Department of Housing and Urban Development to develop voluntary federal guidelines for state and local zoning best practices. Although not mandatory, the guidelines will help shape how communities are evaluated for federal grants and give states a model for developing their own enabling legislation.
Economics
Aug 13, 2026
Construction Employment Rises Amid a Cooling Labor Market
The overall labor market continued to lose momentum in July, with nonfarm payrolls falling by 23,000 and previous job gains revised sharply lower.
Latest Economic News
Economics
Aug 13, 2026
Building Material Prices Show Growth In July
Residential building material prices, excluding energy, rose 0.4% in July and were up 5.0% from a year ago. Energy prices fell again in July but remained significantly higher than a year ago. Meanwhile, prices for services were down 0.3% over the month but were 6.2% higher than a year ago.
Economics
Aug 13, 2026
Homeownership Rate Edges Down to 65%
The latest homeownership rate declined to 65% in the second quarter of 2026, according to the Census’s Housing Vacancy Survey (HVS). The homeownership rate was unchanged from a year ago, and not statistically different than the rate in the first quarter of the year (65.3%).
Economics
Aug 12, 2026
Inflation Eased Slightly in July
Led by declines in gasoline and diesel prices, inflation eased for the second consecutive month after reaching a three-year high in May. As energy prices moderated, shelter resumed its role as the largest driver of headline inflation, accounting for one-third of the annual increase and over two-thirds of the monthly increase.