Single-Family and Build-to-Rent Homes Growing in Size

Paul Bergeron reports that single-family homes in the U.S. are growing in size, "in part because of homeowners’ desire for more space in response to the virus crisis and the opportunity (or necessity) for working from home."

Median floor area grew between the first and third quarters of this year, and industry experts expect the figure to continue growing as people find themselves doing more of their routine tasks—work, school, entertainment—at home. Meanwhile, rental properties continue to see high demand as many potential homebuyers are priced out of the market. For many renters, Bergeron writes, expanded storage is an increasingly important preference. 

According to a separate article by Tyler Wilkins, build-to-rent homes, particularly in suburban areas, are growing in popularity and attracting powerful investors as many households decide to opt for the flexibility, convenience, and lower monthly costs of rental homes. But some city officials fear that investors will buy up rental homes and charge excessively high rents, prompting some localities to issue a moratorium on new rental subdivisions. While the model holds the potential for predatory landlords, housing advocates argue that single-family rental homes fill a gap in an increasingly volatile housing market.