By Mike Sunnucks | Rose Law Group Reporter
Regional real estate expert Jim Belfiore sees continued and significant growth for ‘subdivision rental’ developments across the region.
Those are for-rent single family homes that have been sprouting in Phoenix and other U.S. markets.
Belfiore, who is president of Belfiore Real Estate Consulting, said there are 30 deals for new for-rent residential subdivisions in the pipeline across the region.
That includes projects afoot or planned in West Valley markets such as Goodyear, Tolleson and Avondale.
“There is more activity in that space today than there ever has been,” Belfiore said.
He expects that to grow to as many as 50 to 60 new for-rent communities.
“The numbers are going to grow very rapidly,” Belfiore said.
He said that includes growing areas to the east such as Queen Creek, the San Tan Valley and other Pinal County submarkets.
The for-rent segment grew out of the last recession and real estate crash when more households went through foreclosures, short-sales and adverse credit scores.
But it has continued to grow and is attracting interest in private equity firm and other investors.
Major real estate dealmakers such as Nate Nathan, president of Nathan & Associates, and Greg Vogel, CEO of Land Advisors Organization, both see lots of investors (including large national and international firms) interested in the for-rent, single-family space.
Major homebuilders are also seeing the growth in the space. Scottsdale-based Taylor Morrison Home Corp., for example, is forging a strategic partnership with Mesa-based Christopher Todd Communities, which builds for-rent subdivisions.
Belfiore said vacancy rates are very low for new for-rent communities and he expects to see them put forward throughout the region.
“You are going to see that produce in just about every suburban and exurban market area in the very, very near future,’ Belfiore said.
