Would-be buyers looking for single-family homes without the coinciding for-sale price tags are increasingly turning to build-to-rent communities for a mortgage-free taste of homeownership. Over the last several decades, 3% of all single-family starts were rentals, and by the third quarter of 2022, that number reached 12%, Realtor.com reports.
As more Americans seek out affordable paths to homeownership in a high-cost market, build-to-rent development is taking center stage, offering single-family homes with management, maintenance, and amenity packages—no down payments or mortgage rates required.
“When we asked [millennials] why they rent, four of the five top reasons have to do with affordability,” says Ali Wolf, chief economist at Zonda.
In today’s market, demand remains high for build-to-rent due to rising mortgage rates, says Devyn Bachman, senior vice president of research at John Burns Real Estate Consulting.
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