A Huge Surge in Built-to-Rent Single-Family Homes is Underway – Mish Talk

A surge in Built-to-Rent Homes Expected to Hit All-Time High in 2022.

Key Points

• Described by some as “horizontal apartments,” communities of houses built for the sole purpose of renting are becoming the hottest topic in residential living. 
• 6,740 new rental homes in built-to-rent communities were completed — the highest yearly total to date.
• There are an estimated 14,000 built-to-rent homes under construction in the United States right now. That will more than double the 2021 total.
• Currently, there are about 90,000 existing single-family homes in the United States in nearly 720 such communities designed specifically for renting. 
• The occupancy rate is 97%.

What’s Going On?

• According to Shannon Hersker with Walker & Dunlop: “There is a misconception that the majority of renters are Millennials when, in reality, you have everyone — including college students, empty nesters, families with kids, pet owners, and those wanting to downsize,” she said.
• “Undoubtedly, coronavirus has also impacted upon this increased popularity,” said Christopher Michael, architect and founder of archisoup. “Many are now moving out of the cities and apartment living to seek out more space in rural and suburban locations.”

Top 20 Metro Areas

Texas Leads the Way

Texas and Arizona have five of the top twenty built-to-rent areas.