The market for single-family homes that are built to be rentals is showing signs of declining from its post-recession highs, according to the National Association of Home Builders.
The market share for built-to-rent single-family homes stood at 3.3 percent in the first quarter of 2014. That remains higher than historical averages of 2.8 percent but has dropped from its 5.8 percent share a year ago, NAHB’s analysis shows.
During the recession, the share of built-to-rent homes soared while the foreclosure and financial crises forced more Americans to become renters.
But “it appears the market is returning to historical averages after recent peaks in this form of construction,” according to NAHB’s Eye on Housing blog.
About 20,000 built-to-rent homes were started nationwide in the last four quarters.