Construction of Rental Homes Plunges After Congressional Fight Over Restrictions on the Sector

Construction of single-family, built-to-rent homes declined in the second quarter of 2026, driven by a combination of factors, including rising costs and confusion over federal legislation, according to a new analysis.The National Association of Home Builders found the built-to-rent market saw a downturn in the second quarter of 2026. Approximately 15,000 single-family, built-to-rent units broke ground during this period, compared to 18,000 starts in the second quarter of 2025.Overall, build-to-rent home starts are down 16% over the last four quarters compared to the previous four quarters.Built-to-rent homes are an increasingly popular real estate model in which developers plan and build communities meant to be rented out rather than sold. Rather than individual ownership, a company or property management group owns an entire community or development. Builders like build-for-rent properties because they offer a quicker path to consistent and predictable income. Renters like them because they often offer more space and additional community amenities you wouldn't see in individually rented homes. Despite their popularity among builders and renters alike, build-to-rent dwellings stil...