For-rent subdivisions segments maturing, diversifying for prospective homebuyers, higher-end renters

By Mike Sunnucks | Rose Law Group Reporter

For rent subdivisions — with single family homes and townhouses — are continuing to diversify regionally.

That is coming in terms of types of housing options, floor plans as well as locations, according to Steven Hensley, advisory manager for real estate research firm Zonda.

Hensley said they are also catering to prospective home buyers who are opting for rentals right — including because of the current high demand and low supplies.

“I think it really just stems from the lack of housing,” Hensley said.

Hensley is seeing more infill for-rent projects in Gilbert, Queen Creek / San Tan Valley and Surprise. “We are seeing interest in lots of different parts of the Valley,” he said.

Those include townhouse and more detached single family options. Some of the price points are also higher — with rents in the $2,000 to $2,200 range.

Those moves could prove as challenges to higher-priced apartments.

“It’s turning into a mix of more townhouses with attached two-car garages,” Hensley said.

Hensley said limited supplies of new and existing homes for sale as well as price increase are prompting some prospective buyers to defer purchases.

Hensley said the for-rent single family and townhouses are increasingly marketing to higher-end tenants and those who might need yards for dogs and more space.

“These rental homes have the granite countertops. They have the nice 10-foot ceilings,” he said.

The single family for-rent product first arose after the Great Recession and last real estate crash as a housing option for those coming out of foreclosures and short sales.

Now, the segment — which has been attracting national investors and developers along with the local groups — is catering to prospective home buyers.

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