Development costs are high, and rents don’t justify the investment—at least not in the short term.

From a single-family perspective, only build-to-sell currently makes financial sense.

To build rentals today, you have to take a long-term view: be okay breaking even (or worse) and count on future rent growth to make it worthwhile.

It’s a tough situation. Housing is unaffordable for many, so demand for rentals is high.

But its tough to supply new rental inventory because the numbers simply don’t work.

Would love to hear how others are approaching this challenge.