Housing supply is tightening, rents are projected to rise, and Build-to-Rent communities like The Bungalows® are positioned to meet growing demand.

The U.S. Housing Market Is at a Turning Point

Two recent reports — The Wall Street Journal and Barron’s — highlight powerful shifts in the U.S. housing market that directly support the Build-to-Rent (BTR) model. For investors, developers, and housing market analysts, these changes point to sustained rental demand, favorable supply dynamics, and strong rent growth projections.

Key Data Points Driving the Market

1. Apartment Construction Down 28% (Barron’s)
New apartment construction has fallen sharply compared to last year. Most remaining supply is projected to be absorbed by year-end, creating tighter rental inventory and less competition for purpose-built rental communities.

2. Rental Demand at Highest Level Since 1985 (WSJ)
Some markets are seeing as many as nine renters for each available property. This intense competition underscores the need for high-quality, purpose-built rental housing.

3. $440 Monthly Gap Between Owning and Renting (WSJ)
Buying a home now costs $440 more per month than renting comparable housing. This affordability gap is keeping renters in the market longer.

4. Rents Projected to Rise in Every Major Metro (WSJ and Barron’s)
Through 2025, every major U.S. metro is expected to see rent growth, with some markets projected for 5–10% annual increases.

Why This Matters for Build-to-Rent

Build-to-Rent communities offer a middle ground between apartment living and homeownership, delivering the privacy and space of a single-family home with the flexibility of renting.

These market conditions, reduced supply, elevated demand, and a widening affordability gap, create an environment where Build-to-Rent can thrive.

Cavan Companies and The Bungalows®

At Cavan Companies, we develop The Bungalows®, single-story, detached Build-to-Rent communities designed for long-term livability.

• Established in Arizona: Identified by WSJ as part of the Sunbelt region projected to see a rent growth rebound.
• Expanding into the Midwest: Highlighted by Barron’s for steady rent growth and strong demand.

This strategic footprint allows us to serve markets with some of the most favorable rental housing fundamentals in the country.

The Takeaway

The U.S. housing market is experiencing a shift that supports long-term Build-to-Rent growth. As construction slows, demand rises, and affordability challenges persist, purpose-built rental communities like The Bungalows® are positioned to play a critical role in meeting the housing needs of today’s renters.