The Popularity of Build-to-Rent Spikes for 2022

People have been urged to keep six feet apart from friends and family, maintain their distance, and work from home since the pandemic hit the US and beyond. Individuals who lack space or live in densely populated cities are now looking to the suburbs for additional square footage, a designated work-from-home location, and privacy. However, as of January 2022, asking multifamily rents had risen by 15%, while mortgage payments had risen by 3% since December 2021. 1 As a result of the unprecedented demand for privacy and space, many people are looking for long-term independent housing solutions - build-to-rent homes.??

Communities of single-family houses designed for the purpose of renting have become the hottest trend in housing as tenants want a lifestyle change that provides greater room and privacy. With 6,740 new build-to-rent homes finished last year, 2021 was a record year for single-family rental housing buildings. And the trend is accelerating: twice as many homes are now under construction, with roughly 14,000 slated to open their doors to tenants this year.

According to a recent survey by RentCafe 78% of 3300 renters claimed that they are more interested in investing in single-family rental communities. The survey confirmed the rising interest of tenants in build-to-rent communities, especially considering that the numbers had tripled in 2021. Analyzing the current statistics, Lynn Pollack said that the reason behind the increased demand is that build-to-rent properties provide people with leasing and financial stability along with the convenience and amenities of a well-managed and maintained single-family home lifestyle.?

The Reason Behind Build-to-Rent’s Success

Want to know why build-to-rent homes are so high in demand and what are its turn-key properties? Read on to find out:

Housing Choice

Whether you are a mother with two kids or a senior citizen looking for a home to retire in, build-to-rent homes can cater to the diverse needs of people. Single-family homes are designed keeping the needs of people in mind. Therefore, they can include all kinds of amenities, from on-site nurseries to pet-friendly interiors.?

Management

No more landlord disputes or unanswered calls. Managed by professionals, build-to-rent communities have efficient customer service criteria which ensure that the tenant’s issue is solved as quickly as possible.?

Location

If you are looking for an apartment within the city, the chances are that the rent will be skyrocketing. Constructed in prime locations, build-to-rent homes provide you with everything you need while giving you privacy and keeping you connected to city life.

Community?

The notion of connectivity and community has become more important than ever in the post-pandemic world. More build-to-rent communities offer much-needed communal space, including well-equipped gyms, reading rooms, private cinema, parks, and a wide range of workrooms.?

Quality of Life

The build-to-rent sector relies on generating long-term income; therefore, it should be kept in top-notch condition at all times. The investors play a vital role in ensuring that the community is developed and maintained according to the needs of the tenants.?

Wrapping Up

Since build-to-rent properties require a significant amount of land to be constructed, 61% of them are located in suburban areas. Rent Cafe’s survey results depict the rising demand for single-family homes when 25% of people said that they will want to live in build-to-rent homes because they want more privacy. On the other hand, 29% said they will happily live in single-family homes because they want more space. With more than 6,420 homes in single-family rental communities, Phoenix leads the way as the number 1 metro for build-to-rent homes. It is followed by Las Vegas, Riverside, Houston, Dallas, and Columbus.