As the number of foreclosures wanes and there are fewer distressed properties for investors to scoop up, the market for build-to-rent new construction is becoming more than merely a niche. Housing Wire notes that build-to-rent allows investors to buy newly built homes and rent them out. Because the houses are new, investors can charge higher rent and tenants often stay longer in a house with fresh paint and new appliances.
The market segment is particularly attractive to homebuilders, according to this HousingWire story as holding on to tenants rather than selling all their properties creates cash flow and continuity for builders who often have to look for and line up the next big project or subdivision after one is finished. Builders also profit if they sell an entire subdivision to investors who then rent out the new properties, which eliminates the cost and time for the builder to search for multiple buyers.
Advertisement
Related Stories
Market Data + Trends
Single-Family Permits Show Increase in February
Year-to-date ending in February, single-family permits were up in all four regions of the U.S.
Single-Family Homes
What Does It Cost to Build a Single-Family Home?
A closer look at the itemized costs in each stage of construction for a single-family home
House Review
4 Single-Family Build-to-Rent Home Designs Offering Comfort and Construction Efficiency
Single-family rentals are popular. Take a look at these detached-home design ideas for the single-family build-to-rent market, one of the fastest-growing segments of single-family construction