Homebuilders have a new contender to compete with: build-to-rent developers. There is an infamous dearth of developable land for housing development, and now new demand from build-to-rent investors—with a much different business plan to justify land costs—are buying dirt.

"We have seen increasing interest from a significant number of developers in search of land for the build to rent market," Noah Breakstone, CEO at BTI Partners, tells GlobeSt.com. "We probably receive about three to four calls a week to acquire developed land parcels. There is significant capital chasing deals for this new market."

As a result, these two builder segments are now in competition for space. "From what we can see, the BTR developer is essentially competing with new homebuyers in adding additional pressure on the limited supply of new residential product," says Breakstone. "Both market segments—BTR and the new, for-sale market—need developed land and are competing for new development opportunities."