The single-family build-to-rent sector is establishing itself as a core component of the residential housing market and current conditions are helping it reach equilibrium, according to a new report from Northmarq.
The firm said this is being created by the competitive impact of new construction on operational performance and a more restrictive and increasingly expensive capital environment.
Given the supply and demand dynamics, the absorption momentum (up 35% year over year) is being held in check by high numbers (all-time high) of deliveries today and in the near term. This is limiting rent growth leading vacancy rates upward.
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