According to recent data analyzed by the NAHB’s Eye on Housing, the number of single-family homes built-for-rent has been increasing over the last four quarters. Using data from the Census Bureau’s Quarterly Starts and Completions by Purpose and Design, they report that construction starts of single-family homes for rent totaled 42k homes, compared to 29k in the prior four quarters. In Q2 2018, there were 13k single-family built-for-rent starts. Interestingly, this class of single-family construction excludes homes that are sold to another party for rental purposes and only includes homes built and held for rental purposes.

During these past four quarters, construction starts of this type of housing totaled 42,000 homes, compared to 29,000 for the prior four quarters. There were 13,000 single-family built-for-rent starts for the second quarter of 2018.

According to data from the Census Bureau’s Quarterly Starts and Completions by Purpose and Design and NAHB analysis, the market share of single-family homes built-for-rent, as measured on a one-year moving average, stood at 4.7% of single-family starts as of the second quarter of 2018.

Given the small size of the market segment, the quarter-to-quarter movements are not typically statistically significant. The current market share remains higher than the recent historical average of 2.7% (1992-2012) but is down from the 5.8% reading registered at the start of 2013. This class of single-family construction excludes homes that are sold to another party for rental purposes. It only includes homes built and held for rental purposes.

 

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