Single-Family Rental Investors Make Bigger Bets on Build-to-Rent Homes

Capital pouring into the growing single-family rental (SFR) housing market is bumping up against a tough competitor—the consumer. Heightened competition amid a tight supply of housing inventory in many markets is pushing investors to shift strategies to focus on new development. “What you’re seeing now is the maturation and scale in the sector, where it is really being viewed as a distinct asset class within the real estate sphere, similar to multifamily or data centers,” says Gary Beasley, CEO and co-founder of Roofstock, a marketplace for single-family investment properties. Along with the maturing of the SFR sector, the market has seen more capital, including institutional money, that is targeting single-family rentals and looking for a way to enter the space.