flexiblefullpage - default
Currently Reading

Why Build-to-Rent Developments May Be Making Homeownership More Elusive

Advertisement
billboard - default
Build to Rent

Why Build-to-Rent Developments May Be Making Homeownership More Elusive

Build-to-rent developments traditionally give entry level buyers an affordable stepping stone to homeownership, but as rental costs surge, experts say they may actually be doing more harm than good


October 3, 2022
Single-family homes in build-to-rent development
Image: Stock.adobe.com

First-time homebuyers are struggling to find and afford available starter homes in a high-cost, fast-paced housing market, and rather than waiting for affordability to improve, many are leasing homes in rental-only developments, The Washington Post reports. By the end of the year, builders expect to add 105,000 new homes to build-to-rent developments nationwide, and by 2050, total supply could rise by another 50%. 

As decades-high mortgage rates make home purchases unattainable for a growing number of Americans, rental demand is on the rise, especially among younger generations without an equity cushion. While helpful in the short term, experts worry that build-to-rent communities are actually pushing homeownership further out of reach by making it harder for would-be buyers to save for a down payment.

But critics, including local housing economists, say build-to-rent arrangements are exacerbating long-simmering inequalities by replacing entry-level homes with rentals that make homeownership even more elusive.

Buying a home has long been one of the most direct and reliable paths to building wealth. But when renters face constantly rising rents, it becomes much harder to save for a down payment to buy a home. Data shows that renters spend much more of their incomes on housing than homeowners do, in part because rents tend to rise every year.

Read more

Related Stories

Housing Policy + Finance

The Downside of Rent-Control Measures

If implemented, housing experts say rent-control measures could actually discourage investment and development in the rental housing sector, contributing to the affordability crisis

Affordability

Dakota Partners Provides Affordable Housing Through Homeless Prevention Response Fund Grant

The $1.27 million grant will be used to house formerly homeless residents at the Columbus Commons apartments in New Britain, Conn.

Housing Policy + Finance

Rent Control Policies Gain Traction—Economists Say They’re a Bad Idea

Support for rent control policies is building amid an ever-growing affordability crisis, but economists worry that if implemented, they could deter new housing development

Advertisement
boombox1 -
Advertisement
native1 - default
halfpage2 -

More in Category




Advertisement
native2 - default
Advertisement
halfpage1 -

Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.


Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Subscribe
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.