According to data from the Census Bureau’s October New Residential Construction report and the National Association of Home Builders' analysis, the number of single-family rental (SFR) homes increased in Q3 2017 with 10,000 starts.
The analysis finds that the SFR market share—measured on a one-year moving average—was 3.8 percent of total starts for Q3 2017.
Compared to the historical average of 2.8 percent, the current market share remains higher but has dipped from the 5.8 percent reading registered at the start of 2013.
For the last four quarters, the total starts for SFR homes was 32,000 homes, representing decrease compared to 33,000 during the four quarters prior. However, it is important to note that due to the smaller size of this expanding market segment, the quarter-to-quarter movements are not typically statistically significant, according to the NAHB.
The report notes that older homes are more likely to be rented, making the primary source of SFR homes not in construction, but existing housing—reporting from 2005 to 2015, 56 percent of the gains in the rental housing was due to SFR homes.
While the single-family rental market continues to redefine its borders, the investment landscape offers an opportunity for many in a marketplace that have often been misunderstood. Navigating this dynamic terrain takes careful planning and strategic partnerships.
The 2018 Five Star Single-Family Rental Summit provides an important conduit for SFR leaders to have the important conversations that will push this industry forward.
The 2018 Five Star Single-Family Rental Summit begins March 19th and continues through March 21st at the Renaissance Nashville Hotel in Nashville, Tennessee to discuss the investment opportunities abound in this expanding market.
To register, click here.