The quantity of single-family built-for-rent construction (SFBFR) declined during second quarter, according to a National Association of Home Builders (NAHB) analysis of US Census Bureau data.
During the second quarter, approximately 12,000 SFBFRs were started, down from 25,000 starts in the second quarter of 2024. Over the last four quarters, 71,000 such homes began construction, a 16% decline from the 85,000 estimated SFBFR starts in the four quarters prior to that period.
NAHB blamed higher financing costs and decreased investor interest in single-family homes for the cooling in development activity, adding that “in the near-term, SFBFR construction is likely to slow until the return on new deals improves.”
