Build-for-rent is a bet on the ‘new normal’ housing market

By: Lexi Malen

As the housing inventory remains very low it is keeping home prices high.  Combine this with current interest rates it is making home affordability hard for first time home buyers.  This dynamic (along with others) is creating a market for new homes to be built for rental only.  I find this disappointing as these home builders will use their resources to build many homes for large corporations that intend to only rent these new homes as opposed to bring them to market as affordable homes for first time home buyers.  Clearly the home builders need and want to stay busy and keep their employees employed and productive, I do understand this but I am hoping that some builders, and hopefully the majority shift to building homes for owners and not renters.



Article: Build-for-rent is a bet on the ‘new normal’ housing market



Article Highlights

  • “Developers are forecast to start 74,000 [BFR] units in 2022, up from 59,000 units in 2021,” states the report by Northmarq, a capital markets leader with some $33 billion in annual transaction volume and a loan-servicing portfolio of more than $76 billion. “… The number of units delivered this year is on pace to rise 21 percent, to 64,000 units [compared with 53,000 units in 2021].
  • Single-family homebuilders, too, are looking to capitalize on the build-for-rent market, with Lennar Corp., one of the nation’s largest homebuilders, recently offering to sell some 5,000 homes to investors in the SFR market, according to a Bloomberg report.






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