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