1 Single family rental homes increasing

The housing market took several years to recover from economic downfall. When homes were in foreclosure, many investors bought them and put them up for rent.

Right now, we are experiencing a very popular real estate market. Homes are selling quickly and there is some home shortage. Now, developers are choosing to build more single family rental homes.

Overall, construction of single-family homes is fairly slow. In June,  there was a rate of about 687,000 single-family home project starts. In the mid-90’s, before the housing crash, the rate was never below about 1 million.

According to an article by Florida Realtors, it is expected that rental projects are expected to be the biggest new sector of construction. Right now, it is still just a fraction of construction going on, but will grow.

“Last year, approximately 25,000 detached homes were built for rent. We believe that number will increase significantly over the next several years,” according to “A New Opportunity to Build Detached Homes for Rent,” a report from John Burns Real Estate Consulting, based in Irvine, Calif.

There is strong out outlook for housing demand overall.

“Strong housing demand combined with continued tight supply should boost house prices by over 4 percent this year,” according to the economists at Freddie Mac. Eventually, home builders will start to increase the supply of single family homes overall. But for now supply is expected to remain on the tight side.

“Home sales are on track for the best year since 2007,” say the economists at Freddie Mac. “We expect the economy to post a stronger second half, especially in the housing sector.”

As the economy strengthens, both demand for homes to buy as well as for single family rental homes will increase.

Are you looking for a home to rent? At RE/MAX Paradise, we offer many amazing properties in the Miami area to either rent or buy. Check out our beautiful variety of rental properties today, and contact an agent!