Built-for-Rent Single Family: the Strongest Niche in Real Estate

Followed and Endorsed by Capital Firms and Developers

in this Sector

“As the BFR space is emerging, Brad and his team have a unique perspective on product and market segmentation that differentiates them from their peers and is valuable to investors as they make IRR-driven decisions.”

-Margaret Whelan, Whelan Advisory (placed close to $1 billion in capital for BFR so far)

"Hunter Housing Economics' built-for-rent market studies are unparalleled."

- A National Built-for-Rent Developer/Operator and Repeat Client of the Firm

Our National BTR Forecast (Units)

The outlook for new supply in BTR, shown by the blue bars above, is adjusted to account for today's shortage of capital for BTR development deals as well as effect of the sudden recent adjustment of cap rates. Contrary to what most commentators are stating, the total level of activity in BTR has been running approximately 120,000 units annually.

The roughly 50% decline in starts that is shown here may well end up steeper (possibly 70%-80% down), but this forecast tracks along with the Census Bureau numbers that have (oddly) not yet shown a significant drop for 2024, even though our channel checks indicate a dramatic falloff already. We will continue to monitor.

BTR Research and Commentary

Wall Street Journal, June 7, 2021

Our forecasts of built-for-rent investment and production, as cited in the Journal.

Discussing BTR Strategies

(Jan. 2024) In Forbes, on The BTR Forecast (clickable)

Outlook: There have been some headwinds, but we are projecting 5%-6% rent growth in BFR communities starting in 2025 (possibly late 2024). Click to hear the discussion of this forecast, leasing pace, pipeline, and other issues that are on the minds of BFR developers and capital.

Research and Forecasts Cited in Wall Street Journal

WSJ, June 4, 2021: Citing our forecasts of segments of renters who choose BFR, and our forecast of growing demand (forecast revised higher than this recently!)

Presentation on BFR Strategy, IBSx 2021

Brad Hunter presented a one-hour long Building Knowledge session, drawing upon our case studies and a wide array of research, and discussing ways to maximize rents and absorption amid an increasingly competitive field. CLICK BELOW for a six-minute clip focusing on ways builders can think about getting involved.

"Built-for-Rent: Single-Family and Townhome Trends and Strategies for Builders and Developers."

The Two Fastest-Growing Types Of Built-For-Rent

BTR Data Check: Selected Markets and Submarkets