Arizona-based builder Taylor Morrison announced a partnership with Christopher Todd Communities to build single-family rental communities, CNBC reports.
It’s part of a trend of builders stepping in to the single-family rental space, either on their own or partnering with established rental companies.
Lennar and Toll Brothers have recently started building homes for rent. Lennar sells its properties to investors, while Toll plans to hold the properties in partnerships.
As for Taylor Morrison, the first projects will be in joint ventures, but then it will take over the construction process — acquire land, develop it and eventually build in excess of 2000 single-family homes in rent-only communities. Christopher Todd will design the communities, hire property management and lease the homes. It will all be according to the company’s own time-tested “playbook,” which determines supply-demand characteristics, and then gauges the right submarkets, community design and amenities package.
Demand for single-family rentals is incredibly strong, as home prices soar and social stigmas around renting fall away. Vacancy rates are low and rents are rising. Half of Christopher Todd’s current tenants are millennials and half are baby boomers, according to Palmer.
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