Nationally Recognized Master Planned Community Welcomes Built-for-Rent Neighborhood

Master Planned Community of the Year winner Newland Communities will soon open its Nexton development to a new neighborhood of single-family rental homes. The South Carolina neighborhood will be developed by Capstone Communities and will feature 282 “cottage homes” built to rent. The project is expected to wrap up mid-2022, says Forbes. The cottage homes are referred to as horizontal apartments, which are popping up in the growing built-for-rent sector. Forbes notes that built-for-rent neighborhoods rent out for higher when placed within a master planned community, and this neighborhood could be just the first within the Nexton development.

Some of the future BFRs will target a particular demographic, such as 55+ renters, young families, and even second-home renters (typically grandparents who want to be close to their grandkids during certain parts of the year). Segmentation is going to be more and more necessary as more rental communities emerge as part of this accelerating trend.

3) Driven by compelling demographics and a chronic under-building of homes that are appropriate for first-time homebuyers through this whole cycle, $10 billion in equity (plus $20bbn to $40bbn in debt) is flowing into built-for-rent right now. There is a clear need for more of this type of development, and that has recently attracted the attention of institutional money.

Read More