Lessors of Residential Buildings NAICS 531110

Oct 16, 2025 - "Accidental Landlords" Create New Competition

• Corporate lessors of single-family homes face mounting pressure from “accidental landlords” renting out their homes when they're unable to sell, according to The Wall Street Journal. The dynamic is depressing rent growth, with top U.S. markets projected to rise just 0.8% this year, the slowest pace since 2011, according to John Burns Research & Consulting. Oversupply in some Sunbelt markets, where institutional portfolios are heavily concentrated, is driving down rents for new leases. Companies like Invitation Homes are offsetting losses by raising rents for existing tenants, but widening rent gaps may increase turnover. With nearly two million unsold homes on the market, and 2.3% of listings shifting to rentals, inventory seeping from sales to rentals is reshaping the rental landscape. Despite strong occupancy and retention, corporate landlords are underperforming the broader market, signaling challenges ahead in a housing environment marked by stalled transaction activity.
• The average time to complete new multifamily housing projects dropped slightly in 2024 compared to the year before, according to analysis of Census Bureau data by the National Association of Home Builders. From permitting to completion, it took an average of 19.6 months to complete a multifamily project in 2024, down 0.3 months from 2023. While completion times remain lengthy, the drop in project timelines was notable, especially considering chronic shortages of skilled labor. Completions increase with the number of units, and in 2024, buildings with 20 or more units took an average of 22.1 months, while midsize projects with 10-19 units averaged 19.2 months. Multifamily projects with 5-9 units took about 19.1 months, and buildings with 2-4 units averaged 15.3 months.

• RealPage, a software firm serving 24 million rental units globally, is pushing back against mounting legal and regulatory scrutiny over its AI Revenue Management platform, according to Bisnow. Accused by the US Department of Justice and 10 state attorneys general of enabling rent collusion among landlords, RealPage faces a federal antitrust suit and over 30 consolidated civil cases. Some local governments have imposed ordinances banning algorithmic rent-setting, prompting RealPage to adjust its tools and challenge some laws in court. The company denies facilitating price-fixing, arguing its software merely offers rent suggestions. Despite settlements with major landlords and growing legislative pressure, no court has ruled definitively on the merits of the claims. RealPage maintains that its platform is lawful and beneficial, signaling readiness to litigate and defend its practices amid a patchwork of mounting regulations.
• In the second quarter of 2025, there were about 12,000 single-family built-for-rent (SFBFR) housing starts in the US, down 52% from the same period in 2024, according to National Association of Home Builders analysis of US Census Bureau data. During the four most recent quarters, 71,000 SFBFR homes began construction, down 16% compared to how many were built in the previous four-quarter period. While the historical four-quarter moving average market share for SFBFR is about 2.7% (1992-2012), SFBFR’s current share of the overall single-family market is about 7%. Single-family built-for-rent homes provide an alternative for consumers who want more space but are challenged by a lack of affordable housing inventory and downpayment requirements in the for-sale market. However, SFBFR housing starts have slowed as high financing costs have reduced development activity.