PHOENIX (Aug. 9, 2023) — Pete O’Neil, research director in Northmarq’s Phoenix office, recently shared his insights on the single-family build-to-rent (BTR) market in Wealth Management Real Estate’s 2023 Midyear Outlook.
The article, “A widening gap between owning and renting creates favorable conditions for single-family build-to-rent investments,” discusses the mixed conditions the market faces in 2023.
“Despite a tighter financial environment that is making securing capital for new development more challenging, the longer-term outlook for BTR activity remains bright,” O’Neil said. “This optimism stems from the single-family rental (SFR) sector’s growing popularity and favorable demographic trends that are expected to continue.”
The combination of labor market strength and for-sale housing market condition create a perfect storm for SFR housing, and O’Neil said 2023 is on pace to be a “record-setting year for the delivery of new SFRs.”
“Despite the current uncertainty, it’s clear that SFR housing will continue to appeal to many renters, developers and operators,” O’Neil said. “Though the market may face near-term challenges, the SFR sector has the potential to adapt and thrive in changing conditions, ensuring its continued significance in the housing market.”
Topics covered in the article include:
- 2023 year-to-date market review
- Homeowner and renter gap
- BTR market lending