The U.S. is in a housing affordability crisis. An American family needs to make $110,000 a year to own a typical home, according to the real estate broker Redfin. That’s about 29% higher than what the median household makes.
The biggest problem with the American housing market is a lack of supply, said Laurie Goodman, founder of the Housing Finance Policy Center at the Urban Institute. New U.S. households are forming faster than new units — from apartments to houses — are being built, according to realtor.com, which estimated the overall housing shortfall at just over 4 million in 2025.
That is why Goodman believes build-to-rent is a boon, since these houses would have otherwise not been built. More supply — be it for rent or buying — lowers housing prices for both groups.
“Build-to-rent is a win-win all around,” Goodman said.