Record Number of Single-Family Rentals Reflect the Expensive U.S. Housing Market

Home builders are building a record number of single-family rentals, and young, modest-income households with children are more likely to live in those new homes.

2 minute read

May 2, 2021, 7:00 AM PDT

By James Brasuell @CasualBrasuell


Indian Trail, North Carolina

Gus Valente / Shutterstock

"While still a relatively small share of all new housing, record numbers of single-family rentals were built in 2020," according to Alexander Hermann, who is sharing the findings of recent analysis by the Joint Center for Housing Studies of Harvard University.

"According to our tabulations of Census Bureau New Residential Construction data, 49,000 single-family rentals were started last year, up from 14,000 at the bottom in 2009 and surpassing the previous high of 47,000 in 2003 (Figure 1). However, single-family rentals remained just under 4 percent of total housing construction and 12 percent of rental construction."

As noted by Hermann, single-family rentals provide young, relatively modest families with children much-needed housing options. The Covid-19 pandemic has only spurred demand, resulting in the increased pace of construction, for single-family rentals.

"Indeed, single-family homes provide additional space for home offices, exercise, and remote learning; offer access to private outdoor space; and are often located in suburban areas—all characteristics associated with rising demand over the past year. At the same time, home prices have risen considerably in the for-sale market, making homebuying difficult for many moderate-income families who cannot afford rising prices and larger downpayments."

The prospect of more American families renting, rather than buying, homes has been framed as a red flag in the housing market in discussions about the growing footprint of Wall Street and large, institutional investors in the housing market. Many of those institutional acquisitions are happening at the low end of the market in suburban, single-family neighborhoods, according to recent reporting by the Wall Street Journal. Hermann's presentation of single-family rentals as a housing opportunity, thus, stands in contrast to the threat implied by the response to the news about the growing number of rental houses in the existing housing stock.

Tuesday, April 27, 2021 in Joint Center for Housing Studies of Harvard University

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Aerial view of town of Wailuku in Maui, Hawaii with mountains in background against cloudy sunset sky.

Maui's Vacation Rental Debate Turns Ugly

Verbal attacks, misinformation campaigns and fistfights plague a high-stakes debate to convert thousands of vacation rentals into long-term housing.

July 1, 2025 - Honolulu Civil Beat

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

July 2, 2025 - Diana Ionescu

White and purple sign for Slow Street in San Francisco, California with people crossing crosswalk.

San Francisco Suspends Traffic Calming Amidst Record Deaths

Citing “a challenging fiscal landscape,” the city will cease the program on the heels of 42 traffic deaths, including 24 pedestrians.

July 1, 2025 - KQED

Google street view of red brick multi-story power plant building in Pittsburgh, PA.

Defunct Pittsburgh Power Plant to Become Residential Tower

A decommissioned steam heat plant will be redeveloped into almost 100 affordable housing units.

July 4 - Pittsburgh Post-Gazette

Cyclist on protected bike lane in middle of street in Washington D.C. with Washington Monument obelisk visible in background.

Trump Prompts Restructuring of Transportation Research Board in “Unprecedented Overreach”

The TRB has eliminated more than half of its committees including those focused on climate, equity, and cities.

July 4 - Streetsblog USA

Blue and silver Amtrak train at small station.

Amtrak Rolls Out New Orleans to Alabama “Mardi Gras” Train

The new service will operate morning and evening departures between Mobile and New Orleans.

July 3 - New Orleans City Business