Single-family built-for-rent activity slips
According to the release of the Census Bureau’s Quarterly Starts and Completions by Purpose and Design, Q3 of 2025 reported a softer side in single-family build-for-rent (SFBFR) construction. Aided by analysis from the National Association of Home Builders (NAHB) the 18,000 SFBFR starts reported in Q3 2025 is a great year over year decrease. The third quarter of 2024 reported an estimated 24,000 starts. Year over year, there is an estimated decrease of 25%. A partial cause could be the higher cost of financing and increased multifamily supply crowded out development. NAHB also suggests that quarter-to-quarter movements in this smaller market is not very significant. Another important factor of this figure is that it only includes only homes built and held by the builder for rental purposes, excluding properties sold to others to rent.
“Given affordability challenges in the for-sale market, the SFBFR market will likely retain an elevated market share,” said NAHB Chief Economist Robert Dietz. “However, in the near-term, SFBFR construction is likely to slow until the return on new deals improves.”
