Single-Family Homes Built-for-Rent Expands in Q3 2020

A deeper look into the U.S. Census Bureau’s Quarterly Starts and Completion by Purpose and Design, provided by the National Association of Home Builders (NAHB), reveal that the number of single-family homes built-for-rent (SFBFR) posted a year-over-year increase for the Q3 of 2020. The SFBFR market is a way to add single-family inventory amid concerns over housing affordability and down payment requirements in the for-sale market, particularly during a period of when people want more space and single-family structures. SFBFR construction does differ with respect to structural characteristics compared to other newly-built single-family homes, particularly for home size. According to the NAHB there were approximately 14,000 single-family built-for-rent starts during the third quarter of 2020. This was a 27% increase relative to the third quarter 2019 total of 11,000. Over the last four quarters, 42,000 such homes began construction, which is higher than the 41,000 estimated SFBFR starts for the four prior quarters.