Developers are building new rental homes at a record pace to capitalize on high home prices and rising mortgage rates, which are leading more Americans to rent. In 2023, an estimated 93,000 new single-family rental homes were completed, marking a 39% increase from 2022. The new rental homes come in various sizes and types and are being built mainly in outer-ring suburbs of cities in Arizona, Texas, and Florida, among other fast-growing areas. Despite slowing rent growth, rents for houses continue to rise more than those for apartments. Builders are betting on low home affordability and the lifestyle preference for renting among even relatively affluent Americans will likely sustain demand for rental homes.
