2023 has been a strong year for renter demand, says report
After a few years of rapid growth, the single-family, build-to-rent market (SF BTR) is facing its first period of uncertainty as 2023 winds down. At this stage in the cycle, renter demand for units has remained strong, gaining momentum at the national level and across most major BTR markets, according to a report by Northmarq, a full-service capital markets resource for commercial real estate investors offering service from top experts in debt, equity, investment.
The rise in absorption has been outpaced by an accelerating rate of new construction, with more units set to deliver in the coming quarters and the development pipeline at an all-time high.
Two primary forces are influencing the near-term outlook: the competitive impact of new construction on operational performance, and a more restrictive and increasingly expensive capital environment. Fortunately, these factors should ultimately bring the market back closer to equilibrium. Greater caution in the capital mar