Rental homes are being built at an unprecedented rate due to developers looking to capitalize on steep home prices and higher mortgage rates that are keeping many families from buying, the Wall Street Journal reports.
Last year, 93,000 new single-family homes intended as rentals were built, according to estimates from housing consulting firm John Burns Research and Consulting. That was 39% more rental homes than in 2022—and an all-time high.
Newly-constructed rental homes are especially popular in outer-ring suburbs of Arizona, Texas and Florida cities, and in other places with fast population and job growth.
In Baton Rouge, Kairos Living, a Chicago-based single-family home rental company, has been developing lots off of Elliott Road into rental properties. Founded in 2019, Kairos owns properties in more than 80 cities including Lafayette and Lake Charles, in addition to Baton Rouge. Over the past year, Kairos has bought more than two dozen lots in Baton Rouge.
After last year’s record levels, another 99,000 new rental homes are under construction across the nation this year. Plans for new projects have slowed, however, as lending conditions have tightened.
