Posted in Industry News
Strong Growth In Single-Family Rental Construction
According to the Urban Institute, single-family built-for-rent construction is the fastest growing segment in U.S. housing – outpacing both single-family for sale and multifamily housing. A surprising 35% of all U.S. renters now live in single-family detached homes. About one out of 20 new home starts is a single-family house for renters.
The phenomenon is mainly driven by Millennials who have outgrown the square footage of apartment living, yet don’t have enough saved for a down payment on a single-family home. It’s also a popular living arrangement among young high-achievers who have to bounce quickly from city to city when they switch jobs or get relocated.
The homes for rent typically have luxuries not available in most rental properties, including granite countertops, hardwood floors and walk-in closets.
Due to the transient nature of renters, there is a misconception that rental homes are often built to lower standards of quality compared to for-sale homes. However, premium products should not be reserved for the for-sale market alone. Before moving in, a renter assesses many of the same qualities in a home that a buyer would – squeakiness of the floors, cracks in the walls or tile, beauty and quality of the exterior, etc.
Homes built specifically for the rental market need to strike the perfect balance between cost and quality. An enhanced sub-flooring like LP® TopNotch® 350 Sub-Flooring offers durability, strength and stiffness at a mid-tier price. LP® SmartSide® Siding offers hassle-free installation for job site crews, while also providing curb appeal that will attract the eye of a renter. The key is to opt for products that simplify or speed up constriction time on a job site while also offering long-term durability for the many renters that will reside in the home.
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