Since the 2008 Global Financial Crisis, the U.S. housing market has struggled to keep up with growing demand. Although there is a significant need for affordable, entry-level housing, driven largely by population growth and millennials reaching the age of forming households, the rate of homebuilding remains insufficient—especially for attainable, starter homes.
Rising labor and construction costs, further strained by a shrinking workforce and supply-chain challenges, along with high interest rates, have led builders to focus on more profitable, high-end homes rather than affordable options. As a result, we face a housing shortfall of at least 2 million homes, and with new housing starts still not meeting demand, the deficit continues to deepen.
These are a few reasons why the Build-To-Rent niche continues to grow at such a rapid pace. It’s quickly being recognized as one very viable solution to the current housing crisis.
Not only do BTR communities help address the need for entry-level homes, but they are also liked by those who prefer renting as a lifestyle. This is especially relevant now, given the monthly cost of buying a single-family starter home is more expensive than renting a similar home in each of the top 20 markets across the country.