Over the past year, builders have been taking on more new-construction projects featuring single-family homes that are being built specifically to rent out. This might be opening the door for more investors who want to buy new.
The market share of single-family homes built-for-rent comprised 4.4 percent of total starts in the third quarter, according to the Census Bureau. That’s significantly higher than the historical average of 2.8 percent, according to an analysis by the National Association of Home Builders. Single-family built-for-rent starts have totaled 34,000 homes in the last four quarters.