MINT HILL, NC – Some experts believe the boom of built-to-rent suburbs is coming and is the wave of the future. In fact, an article from The Wall Street Journal talks about how these types of suburbs are spreading across the country.
This article specifically discusses gated communities in Arizona offering homes for rent in suburban master-planned communities. Instead of developing these single-family home communities to sell the homes, some companies are creating suburbs specifically to rent out the homes.
When living in a community like this, the homes are managed much like an apartment complex. The subdivisions are owned by the same developer. Some built-to-rent communities offer individual investors to buy a single home or several homes in the community as a real estate investment. Then, a property management company is used to run the entire community. Mint Hill has a community like this being built right now. It’s called Riley Meadows and it is near Hwy 51 and Idlewild Road.
Banks & Investment Firms Are Betting Billions
While built-to-rent homes only make up about 6% of the new homes built right now in the United States, many large banks and investment firms are betting billions on these properties. It’s expected about $18 billion will be invested over the next 18 months into the built-to-rent suburban homes.
These types of subdivisions are being developed in about 30 states across the country. Some builders predict about half their business could come from built-to-rent projects.
COVID-19 Helped Push The Built-To-Rent Boom
The fire behind the built-to-rent boom has been pushed even faster due to COVID-19. With many people leaving urban areas for suburbs, it has become easier for BTR communities to lease their properties. Some are even seeing close to 100% occupancy.
Built-to-rent growth on the building side has also risen as a result of COVID-19. With so many people relocating, some areas of the country are seeing a huge boost in BTR properties.
While BTR properties are growing, COVID-19 also created a very powerful seller’s market. Many builders are choosing to sell instead of rent, due to the incredibly hot market in many areas. Build-to-rent may see incredible growth, but it may level off after a few years, as well.
It’s not easy to predict what’s going to happen with the real estate market or with build-to-rent properties right now. Post-COVID time might make it more difficult for land developers and home builders. If this becomes the case, it might push more builders into the build-to-rent sector.
I would love to be part of your journey when the time is right for you. If you ever have a real estate question or need, or know someone who does, trust that you can turn to me. I will help you make the right move! Anna Granger (704) 650-5707 | firstname.lastname@example.org | www.1stchoicepropertiesinc.com