Single-Family Built-for-Rent Construction Starts Increase 15.9% Year-Over-Year

According to the latest U.S. Census Bureau’s Quarterly Starts and Completions by Purpose and Design report for Q4 2021, with further analysis provided by the National Association of Home Builders (NAHB), there were approximately 15,000 single-family built-for-rent (SFBFR) starts during the final quarter of 2021. Over the course of 2021, 51,000 such homes began construction, which is a 15.9% gain compared to the 44,000 estimated SFBFR starts in 2020.

The SFBFR market is a way to add inventory amid concerns 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. Single-family built-for-rent construction differs in terms of structural characteristics compared to other newly-built single-family homes, particularly with respect to home size.

NAHB analysis notes that, 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 (4.5%) remains higher than the historical average of 2.7% (1992-2012) but is down from the 5.8% reading registered at the start of 2013.