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 2023 BFR Forecast (Units)

The 2023 outlook for unit-volume in BFR, shown above annually (left) and quarterly (right) is adjusted to account for today's heightened scrutiny and selectivity concerning BFR development deals as well as effect of the sudden recent adjustment of cap rates. Activity is expected to continue to gain momentum in 2024 and 2025, as more homebuilders pivot toward building homes with the intent of selling to an operator, hitting close to 150,000 units built for rent in 2024, heading toward 160,000 per year and continuing to rise. Even at these volumes, the occupancy rate is projected to be 95%. (Note: the data shown in the right hand chart above are housing units started for rental purposes on a per-quarter basis). Regionally, it is expected that the Sunbelt will continue to garner a disproportionate share of the volume growth.

BFR Research and Commentary

Wall Street Journal, June 7, 2021

Our forecasts of built-for-rent investment and production, as cited in the Journal. Click here to read the article.

Discussing BFR Strategies

In the webinar clip below by the Housing Innovation Alliance, Brad talked about how even with the huge number of new players coming in, new supply is going to fall short of demand for the next five years. He discusses strategies with two of the larger players in this space. Click below to watch:

2023 Outlook: There have been some headwinds in late 2022 and into January 2023, but we are projecting 5%-6% rent growth in BFR communities in the years 2024 and 2025. 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."

(Jan. 2023) In Forbes, on The BFR Forecast (clickable)

Speaking at this Upcoming Conference:
(Use promo code "Hunter15" for 15%-off registration fee)

Speaking at this Upcoming Conference:
West Palm Beach Hilton, March 27th. Click below for registration.