I'm watching a version of this where I live. Lots of single-family homes built-to-rent. But this is not a rental lock-in as it may seem.
In Maricopa County, Arizona, builders need a 100-year guarantee of water supply. This is usually provided by the municipality. Ah, but groundwater is being consumed faster than expected, other pressures, and it really doesn't matter what they are. Builders are being denied these certificates. No build, no sale.
One way around this is for municipalities to arrange for water form other sources, but water management areas such as in Maricopa County cont5rol all that.
So, the build-to-rent boom. For rentals, they need not have a certification of water supply. Now, sadly, this means that some day the municipality can deny them service, as they never had as guarantee. There is notice to be given of course, but in the end these homes sit idle when that happens, and it will happen.
Yet, until then, well, profit. And the municipality enjoys tax revenue, both property and sales etc., investors get their end, and renters live happy as can be until the other shoe drops.
Mind you, where I live, plenty of regular build are happening, so many that we are now 50,000 population over what was planned as 'full build-out'. In other words, oversubscribed. But that's the least of their maladministration.
Around the Phoenix area, rents increases are slowing down, partly due to reduced demand, as you might guess, and partly due to some investors cashing out as mortgage rates dip just enough to make it worth buying. And plenty of legit, for-sale homes are being built, it seems many in the affordable pricing ranges.
But the choice to rent or buy is not as simple as it seems. It's not always investors busting the market, sometimes it's in-migration, with newcomers in the Phoenix area last year hitting the market hard. That's resolving.