Bourke has partnered with Atlanta-based Quinn Residences, a dedicated BTR operator, and helped it grow from just four communities at the beginning of 2021 to 17 now, either open or in development. “It’s actually been outperforming traditional multifamily investments in rental growth and occupancy for half a decade.” “BTR is the hottest sector in residential real estate right now, bar none,” says Katie Fidler, director of research and communications at Atlanta-based developer and asset manager St. Single-family rents started 2022 up 12.6%, the largest increase in 17 years, according to CoreLogic, and have even outpaced similarly surging apartment rent gains during the pandemic. “We’re seeing another resurgence of the demographic shift toward renting houses versus buying them.”īy contrast to what’s happening on the sales side, the single-family BTR market, where developers create entire communities of stand-alone units with the sole intent of renting them out, has been on a tear. “Homeownership just got punched in the gut,” says Mark Wolf, CEO of San Antonio–based AHV Communities, a developer, builder, and operator of single-family BTR homes. The NAHB/Wells Fargo Housing Market Index cratered.Ī measure of current sales, sales expectations, and home buyer traffic, the index’s three components all posted losses in June.īut the blood on home selling’s tracks has a gilded glint, when viewed through a BTR lens. With three interest rate hikes in the rearview mirror and more expected as the Fed battles unabated inflation, mortgage rates crossed the 5% threshold for the first time in 13 years. Instead of hunkering down, hoarding cash, and staying put, home buyers left major metropolitan areas and sought single-family homes in the suburbs, where they could find enough space to work remotely while avoiding elevator rides and awkward hallway greetings with their neighbors.Īs the Fed slashed its way toward stimulating the economy, the corresponding dramatic rise in home prices didn’t stymy demand, with low mortgage rates keeping monthly payment amounts in reach.īut that all changed in the first half of 2022. That, of course, was right before millions of Americans, faced with the uncertainty of the unfolding COVID-19 pandemic, did the unexpected and started buying houses in droves. “Housing leads the business cycle, and housing is slowing,” said NAHB chairman Jerry Konter in a May release announcing the worst showing for builder confidence since June 2020. Rising mortgage rates, tacked onto home prices that had grown as much as 19% in 2021-the biggest rise in 34 years-chased away foot traffic at spring openings. And that’s good news for home builders in the burgeoning single-family build-to-rent (BTR) space.Īfter nearly two years of surprisingly brisk demand from buyers that drove home prices and sales higher across the country, a slowdown has finally arrived. This is when it gets hard to sell houses again. Please read more about our investments in sustainability and our ESG standards here. We calculate the number of trees saved for homes using our roof and floor trusses using a 25% savings on total board footage production. We calculate the number of homes supplied with READY-FRAME® using our average board footage processed per house, which is based on our 2019 READY-FRAME® saw production data and our 2019 data of actual homes produced with READY-FRAME®.The structural building components association (SBCA) study "Framing the American Dream" ( /fad) found that stick-framed structures use 25% more lumber than manufactured components.
An independent third-party study found that the lumber reduction from homes built with READY-FRAME®, compared to traditional stick-framed homes, equals approximately 7.8 trees per the average size US home of approximately 2,300 sq. 1 Calculation based on production data for Builders FirstSource READY-FRAME® precut framing packages and roof and floor trusses since January 1, 2019.
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