Single-Family Rental and Build-to-Rent Sector Faces Slowdown

[Sanjeev Advani]

Single-family rental (SFR) and build-to-rent (BTR) properties have seen a surge in demand over the past five years, but the sector is now confronting a slowdown. Despite rising interest from young families and institutional investors, the number of new SFR and BTR units is expected to decline sharply, from 34,000 in 2024 to just 9,500 in 2025, a 73% decrease.

While demand remains, rent growth in this segment has turned negative, falling by 0.8% in Q2 2024 due to higher vacancies in 2023. The challenges stem from cautious equity investment and local opposition to these developments, which are believed to attract large families with school-age children.