TheMReport — News and strategies for the evolving mortgage marketplace.

Issue link:

Contents of this Issue


Page 46 of 67

M REPORT | 45 O R I G I NAT I O N S E R V I C I N G DATA G O V E R N M E N T S E C O N DA R Y M A R K E T THE LATEST DATA Built-to-Rent Homes Projected to Hit Record High in 2022 As homeowners and buyers seek more space and privacy, constructing from the ground-up is giving consumers means to rent affordably. A ccording to a recent survey of 3,300 renters on RentCafé, as many as 78% said they were interested in living in a com- munity of single-family homes. The survey confirmed the rising interest in single-family rentals that began to take shape last year, where searches for "homes for rent" tripled in 2021 com- pared to the previous year. For renters looking for lifestyle changes offering more space and privacy, single-family communities and houses built for the purpose of renting have become a more popular trend in housing. While 2021 was a record year for single- family rental home construction, with 6,740 new built-to-rent homes already completed. The trend is growing rapidly, as twice as many homes are now under construction for an average total of 14,000 set to open their doors to renters this year. Described by some experts as "horizontal apartments," commu- nities of houses built for the sole purpose of renting are becoming an increasing topic in residential living. Although proliferated in the aftermath of the 2008 housing crisis, the pandemic created an unprecedented demand among renters for space and privacy, un- like apartments. The built-to-rent trend com- bines the financial and leasing flexibility of a rental with the amenities and convenience of a professionally managed property, all while living a single-family home lifestyle. As a result, ev- eryone is interested, according to Shannon Hersker with Walker & Dunlop, "There is a misconcep- tion that the majority of renters are millennials when, in reality, you have everyone including college students, empty nesters, families with kids, pet owners, and those wanting to downsize." Because consumers need large lots of land to build on, rental home communities are prevalent in low-density areas, with the 61% located in suburbs. "Undoubtedly, coronavirus has also impacted upon this increased popularity," said Christopher Michael, Architect and Founder of Archisoup. "Many are now moving out of the cities and apartment living to seek out more space in rural and suburban loca- tions." Mapping the top 100 loca- tions with the most built-to-rent houses reveals that 39% of these communities are located in urban areas, particularly in geographical regions where land availability al- lows. While they're more likely to be found in urban settings in the Southwest, they tend to be more present in suburban areas in the Midwest and Northeast. The top metros for built-to-rent houses include: • Phoenix, Arizona • Tucson, Arizona • Columbus, Ohio • Dallas, Texas • Houston, Texas • Las Vegas, Nevada

Articles in this issue

Archives of this issue

view archives of TheMReport - •FULL_MReport_Feb2022