Built-to-rent homes are trending in Arkansas
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In Arkansas, nearly 210 built-to-rent homes are planned or under construction per million residents, according to the National Rental Home Council.
- Nationwide, the average is 345.
Why it matters: Built-to-rent housing offers a new home with property management perks, and without the need for a down payment or long-term commitment, Axios' Felix Salmon reports.
What's happening: These houses are in growing demand among would-be buyers who can't afford — or find — a single-family home, and those opting not to buy for lifestyle reasons, Doug Ressler of the real estate research firm Yardi Matrix tells Axios.
By the numbers: Northwest Arkansas' single-family rental supply ranked No. 21 among the top 100 in the U.S. during the last five years, per a recent report from listing service RentCafe.
- 538 homes were built in NWA and 457 in the Little Rock area.
- National construction of new build-to-rent homes hit a record high last year, with more than 14,500 houses completed and three times as many under construction, per RentCafe.
Between the lines: The Arvest Skyline Report doesn't specifically track single-home rentals, but data show NWA home sales slowed in the second half of 2022, while prices climbed to an all-time high.
- Average rent for multifamily units also reached a record $926, up 7.6% from June 2022.
Be smart: Single-family rentals are nothing new. Like multifamily housing, the market has developed over many decades, per commercial real estate company CBRE.
The bottom line: Building more single-family rentals isn't going to solve the housing crisis, but it could ease the supply crunch.