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Rental Home Construction Hits Record High Fueled by Housing Shortages

This interesting article from the Wall Street Journal reveals that home shortages and interest rates have led to developers building new rental houses at an unprecedented rate. In 2023, a record 93,000 single-family homes for rent were completed, a surge of 39% from 2022. This trend is particularly pronounced in rapidly growing areas such as Arizona, Texas, and Florida. Even with slower rental growth compared to the peak of the pandemic, house rents are still outpacing apartment rents. Builders anticipate continued high demand due to steep home prices, driven by shortages, and mortgage rates above 7%.

The significant shortage of homes is opening up numerous opportunities for profitable and socially beneficial investing in the housing sector. Carpathian Capital’s funds invest in all types of developments, including Build for Rent. Below are some pictures of our current projects.

Source: Parker, Will. 2024. “Sky-High Housing Costs Propel Construction of Rental Homes.” Wall Street Journal. May 14, 2024. Accessed May 21, 2024.

 

 

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