After several years of decline following a mid-2010s peak, the single-family rental (SFR) sector has re-entered a consistent growth phase, fueled by rising build-to-rent (BTR) supply and continuing affordability pressures in the for-sale housing market.
While total SFR households remain below the sector's 2016 high, renters' increasing demand for higher-quality homes in amenity-rich communities signals the beginning of a durable structural shift.
The number of SFR households increased again in 2025, growing 1.7% to an estimated 14.6 million, according to preliminary joint research from Arbor Realty Trust and Chandan Economics. This marks a seven-year high and continues the sector's recovery after a slowdown between 2017 and 2022.
After reaching an all-time peak of 15.2 million households in 2016, the sector saw growth decelerate in five of the next six years, falling to a cyclical low of 14.1 million in 2020. During that period, small landlords, consisting of those operating fewer than 10 units — took advantage of strong home prices and historically low mortgage rates to transition much of their inventory back to owner-occupied housing, which added roughly 8.6 million households over five years.
Official U.S. Census Bureau data confirm the recovery, according to the report. SFR households rose by nearly 141,000 in 2024, reaching 14.4 million. Preliminary 2025 estimates from Chandan Economics show an additional increase of about 243,000 households, highlighting renewed momentum in the sector.
Much of this growth is being driven by attached, purpose-built single-family rentals, reflecting the increasing influence of the BTR model. Build-to-rent construction now routinely accounts for more than 7% of all single-family development, up from just 2.3% of the market between 1975 and 2013. The rise in BTR supply has helped the sector absorb a growing number of household formations, providing modern, amenity-rich options that appeal to today's renters.
Data from the American Community Survey further illustrates this trend. In 2024, households in attached SFR properties jumped 4.3% from the previous year, while detached single-family rental households grew just 0.1%. Despite 78.4% of SFR households still residing in detached homes, attached properties accounted for 91% of the sector's total expansion last year.
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