U.S. Single-Family Built to Rent Construction Starts Declined Year-Over-Year in 2025

According to the latest U.S. Census Bureau release of Starts and Completions by Purpose and Design, with additional analysis provided by the National Association of Home Builders (NAHB), during Q4 2025, single-family built-for-rent (SFBFR) or built-to-rent, (BTR) construction fell back in Q4 2025, as a higher cost of financing and increased multifamily supply crowded out development.

According to the NAHB’s analysis, during Q4 2025 there were approximately 15,000 SFBRF starts during Q4 2025. This is down slightly from the Q4 2024 total of 16,000 starts. Over the course of 2025, 68,000 such homes began construction, which is a 19% decrease compared to the 84,000 estimated SFBFR starts in 2024.

The NAHB notes that the SFBFR market is a source of inventory amid challenges regarding 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 structural characteristics compared to other newly-built single-family homes, particularly with respect to home size. However, investor demand for single-family homes, both existing and new, has cooled with higher interest rates.

The NAHB points out 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 of 7% is nonetheless higher than the historical average of 2.7% established between 1992 – 2012.