The build-to-rent market is exploding in growth, CNBC reports. While homebuilding in general has underperformed in recent years, one segment of residential construction has seen large growth: Building a home with the intentions of renting it out.
In 2017, 37,000 homes were built as rentals; that number rose to 43,000 last year, or just under 5% of total single-family housing starts, the National Association of Home Builders reports. That number is likely much less than the true number of homes built as rentals. The number reflects just the homes built and held by builders for rent and does not include those sold directly to investors, CNBC reports.
“There is a consumer rental demand that is driving these institutions to want much greater levels of inventory of this product,” Gerald Ellenburg, CEO of ERC Homebuilders, told CNBC. “They are learning or have learned that new inventory is a much safer and more official rental product.” Continue Reading or Check Out Our Exclusive, Off-Market Real Estate Investing Opportunities!