By Mike Sunnucks | Rose Law Group Reporter
The for-rent single-family subdivision business model continues to draw significant interest in the Phoenix market.
Real estate expert Jim Belfiore said he continues to see strong interest and potential projects throughout suburban areas of Phoenix market. “It’s pervasive,” said Belfiore, who is president of Belfiore Real Estate Consulting.
“There is surging interest in the ‘build to rent’ product,” said Belfiore.
That includes more farther out submarkets such as Pinal County. The level of interest in building for-rent homes has continued through the pandemic and all of 2020’s turmoil.
Belfiore said the only submarkets where he has not seen interest in the for-rent single family homes segment is high-priced Scottsdale and downtown Phoenix.
The business model of new for-rent single-family homes, townhouses or duplexes arose from the Great Recession when foreclosures, short sales and job impacts created more renters.
The concept is also more appealing than apartments to families as well as some renters with pets.
Projects have sprouted in the West Valley and East Valley as well as in some other U.S. markets.
Belfiore said the sprouting industry does faces some changes and challenges. He expects builders to start offering some different floor plans and designs to set themselves apart from other projects.
Belfiore also said he has seen some lease up rates at for-rent subdivisions slow down a bit and that the segment, like others in the real estate industry, is hampered by labor shortages that can impact timetables and costs.