Built-to-rent housing projects are expanding across the United States as real estate competition drives away potential buyers, says The New York Times.
Roughly 6% of new single family homes built in the U.S. are rental properties, making home rentals one of the fastest growing sectors of the national housing market.
“Years prior to the pandemic, we found that consumers were drawn to a housing option that combines the best of both worlds: single-family living and no-hassle, maintenance-free leased living,” said Josh E. Hartmann, the chief executive of NexMetro Communities, a developer with two dozen neighborhoods of built-to-rent homes, the majority in the American Sun Belt.
The quality of these built-to-rent homes holds up to that of traditional homes. And for consumers hesitant to put down long-term roots, they may be a better financial bet. “If you don’t think you’re going to be someplace for three years or more, the transaction costs are just too high to buy,” said Norman Miller, a professor of real estate finance at the University of San Diego. “The only downside is you’re going to lose out on the investment aspects of homeownership.”
Advertisement
Related Stories
Market Data + Trends
Nearly One-Third of US Homes for Sale in Q1 2024 Are New Construction
The portion of housing inventory that’s newly built remains at roughly double pre-pandemic levels
Housing Markets
10 Biggest Publicly Traded Home Builders Undeterred by High Mortgage Rates
Together, the 10 biggest builders recorded 77,255 new homes in Q1 2024, an increase of more than 18% from Q1 2023
Economics
Mortgage Rate Declines Could Boost Home Sales Following Months of Low Activity
Encouraging economic news bumped mortgage applications up by 2.6% for the week ending May 3