After building a business by scooping up hundreds of thousands of homes nationally to assemble vast portfolios of single-family housing, some investors are now taking the next step and building new homes to meet rental demand.
“The build-to-rent market has started to expand significantly over the past year,” says Gary Beasley, CEO and co-founder of Roofstock, a marketplace for rental houses. “A lot of entities, including traditional homebuilders and investors, are starting to become active in this space.”
Developers built more than 36,000 houses as rentals in 2017. That’s 6 percent more than the year before and the largest number of “build-to-rent” houses completed in any year for at least the last 14 years, according to data from John Burns Consulting.
For example, in Houston there are 10,893 rental houses that were built since the start of 2014, according to ATTOM Data Solutions. The total represents a mix of houses built to be rental homes and new subdivisions initially planned as for-sale houses that are now instead being marketed as rentals.