The “Build to Rent” housing market is one of the new things that many developers are looking into. Younger homebuyers’ exclusion from the housing market due to ever-increasing prices has prompted developers to see an opportunity to assist them in moving into a new home.
The developer of “Build to Rent” focuses on small rental homes in areas that are well-served by public transportation and in cities with a lot of economic dynamism and population movement. Long-term rentals are becoming increasingly popular with renters.
Since they don’t have to move their families when they change jobs, the working-from-home crowd is moving into rentals. They benefit from the security of working from home.
A small percentage are managed by professionals, while the majority are privately owned and operated. A community of single-family homes is built under the build-to-rent model with the intention of catering to the rental market. The community operates similarly to a conventional multifamily asset.
The enhanced tenant experience is the real innovation in the build-to-rent space. By developing all homes within a professionally managed, amenity-rich community without imposing Strata fees on residents, BTR offers tenants all of the advantages of single-family rentals.
Young people will begin to accept this kind of housing, and Boomers who are retiring will also prefer renting over owning. Build-to-rent properties are great for families because they each have their own backyard, giving them plenty of room to raise their children.
The single-family rental developer, in contrast to the multifamily developer who rents apartments and townhouses, will have a greater investment, particularly in meeting the requirements of their area’s zoning for single-family homes. Garages will be required for many, not carports.
The more people who hear about this kind of community, the more people will want to rent one of these homes, so expect higher rents for them.
If you’re a “Build to Rent” developer and haven’t looked into modular yet, you should! Going with anything other than modular will never help you get your homes built and rented out faster!