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MortgagePoint » Your Trusted Source for Mortgage Banking and Servicing News 24 May 2025 C O V E R S T O R Y III. Build-to-Rent Sector Booming and Evolving (Insights from Doug Ressler, Yardi Matrix) "The BTR model is particularly appealing in today's market, as it addresses both the flexibility desired by modern renters and the investment stability sought by developers and investors." "By 2030, institutions are expected to own around 40% of all single-family rental units, which include BTR properties." "Rising costs of materials and labor can make BTR projects financially challenging." "Navigating complex zoning laws and regulations can be difficult, especially since many areas do not have specific provisions for BTR developments." BTR Expansion » Build-to-Rent completions increased 15.5% year-over- year in 2024. (Ressler, Yardi) » 109,898 single-family homes for rent are currently in different stages of devel- opment across the country. (Ressler, Yardi) Institutional Investment Growth » Institutional investors cur- rently own about 3-4% of the Build-to-Rent (BTR) market... projected to own around 40% of all single-family rental units by 2030. (Ressler, Yardi) Rental Pricing Trends » Median asking rents have declined for 20 consecutive months but remain just $65 below the 2022 peak of nearly $1,700. (Jiayi Xu, Realtor) Key Data Points II. Investment Landscape: Caution Amid Opportunity (Insights from Rob Barber, ATTOM) "Declining yields are largely being driven by rising home prices. For investors looking to enter the single-family rental market, it may be wise to wait before purchasing a property — or, if possible, focus on areas where home prices haven't surged as much." "Institutional investors, who typically aren't managing properties directly, have more flexibility to invest across a wider range of markets." "It's likely that downward pressure on rental yields will continue into 2026 unless there's a major shift in the housing market."