While many Americans wait for potential relief in the housing market, some real estate developers are taking advantage of the high demand within the market and investing in “build-to-rent” neighborhoods, which consist of full-size homes available for rent.
Build-to-rent homes are at an all-time high, according to RentCafe’s analysis of Yardi Matrix data. In 2021, 9,978 homes were built and that number jumped to 15,691 in 2022. Last year, over 27,000 new build-to-rent homes were constructed – the most being in Phoenix, Dallas and Atlanta.
The National Association of Home Builders said build-to-rent homes are a good option for people who can’t afford to buy a home or people who tend to move around a lot for work.
“Homeownership is typically the most important wealth accumulation for families,” Robert Dietz, the chief economist for the National Association of Home Builders (NAHB) said. “From a policy perspective, building more housing that provides homeownership opportunities is absolutely the best option, but that shouldn’t take away from the fact that for some households, the best option for them may be renting.”
Sarra Muqaddam-Grayer and her family of four moved from Michigan to Minnesota last year. Her family looked for other housing options but didn’t want to be crammed into an apartment with two teenagers, which led them to a build-to-rent neighborhood in Woodbury, Minnesota.
“These types of communities have definitely stepped up the game of renting instead of owning, because some people just don’t have the ability to take care of a home like that anymore,” said Muqaddam-Grayer, who is now the property manager for two build-to-rent communities.
