Single-Family Built-for-Rent Construction Posts Small Decline in Q2 2020

According to analysis provided by the National Association Home Builders of the U.S. Census Bureau’s Quarterly Starts and Completion by Purpose and Design, the number of single-family homes built-for-rent (SFBFR) posted a minor year-over-year decline in the second quarter of 2020. The SFBFR market has received attention as a means to add single-family inventory amid concerns over housing affordability and down payment requirements in the for-sale market, particularly during a period of double-digit unemployment and weak wage growth. Single-family built-for-rent construction does differ in structure characteristics compared to other newly-built single-family homes, particularly with respect to home size. There were approximately 12,000 single-family built-for-rent starts during the second quarter of 2020. This was a slight decline relative to the second quarter 2019 total of 13,000. Over the last four quarters, 40,000 such homes began construction, which is lower than the 44,000 estimated SFBFR starts for the four prior quarters.