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Pineridge Farms Build-to-Rent

Build-to-Rent suburbs make up >6% of recent properties built

market research Aug 03, 2021

In the past, the typical real estate investor has sought out single-family homes to rent out to tenants. Often in sporadic purchases around town in a variety of neighborhoods. These purchases get mixed in with neighbors who own their own homes.

Now we are starting to see a shift in strategy. Investors are gravitating toward organized communities, managed more closely to that of new apartment buildings. Those with designated staff for leasing and repairs, etc. These build-to-rent developments are becoming more and more common across the country as a simpler alternative to single-family investing.

"In the past few years, the model has taken off around Phoenix and elsewhere—and is likely to become a dominant force in the rental housing market in the coming years, with implications for the communities that surround them, and the nature of home ownership." - Wall Street Journal

As of right now, built-to-rent properties make up over 6% of recent properties built in the U.S. each year.

"Backed by banks and personal funding corporations, they’ve already wagered billions on the sector, and can put down some $40 billion extra throughout the subsequent 18 months. Built-to-rent subdivisions have been constructed or are in development in nearly 30 states." - Hunter Housing Economics

"Built-to-rent may quickly change into 50% of [our] complete business." - Taylor Morrison Home

According to the Wall Street Journal, homeownership is anticipated to decline over the next twenty years—following the pattern post child boomer era. These build-to-rent subdivisions not only benefit investors...they meet the needs of a growing population of income earners who are getting priced out on homes, but need to live near the city for employment. Many aren't even interested in purchasing a home, preferring the amenities that often accompany a master-planned community (pool, clubhouse, gym, etc). 

"These financial forces and generational preferences are creating a brand new form of housing: the owner suburb (Build-to-Rent). Hundreds of properties which may ordinarily be managed by owners—[are] landscaped, renovated...personalized (guidelines set by a owners’ affiliation)—an alternative, professionally managed by real-estate firms, which generally deal with everything from repairs and landscaping to drawing the rules on what neighbors can place in their lawns."



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