Jul 11, 2023 - Real Estate

Charted: Virginia's built-to-rent housing boom

Single family built-to-rent units planned or under construction, per million residents
Image credit Data: National Rental Home Council, U.S. Census Bureau; Chart: Thomas Oide/Axios

In Virginia, there are 126.5 built-to-rent homes planned or under construction per million residents, per the National Rental Home Council.

  • Nationwide, the average is 345.

Why it matters: Built-to-rent housing — that is, single-family houses constructed for the purpose of rental housing — offers a new home with property management perks and without the need for a down payment or long-term commitment.

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 real estate research firm Yardi Matrix tells Axios.

  • Metro Richmond needs around 15,000 new homes to meet current demand, according to a new report from Zoom.

By the numbers: 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.

State of play: Built-to-rent properties aren't available everywhere. In 10 states, there is no single-family built-to-rent construction ongoing or even planned, the group found.

  • Arizona leads with 2,011 units planned or under construction per million residents.

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.

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