By Vincent Deorio | Wealth Management
In spite of the economic challenges brought on by the COVID-19 pandemic, rental housing remains a coveted asset class among investors, with demand running high in many U.S. metro areas. The need for shelter exists in any economy, making real estate investing a virtually recession-proof endeavor. Specifically, the build-to-rent (BTR) segment of the real estate sector has emerged as one of the strongest since the pandemic started in early 2020. But what exactly is the build-to-rent sector and where can investors benefit the most from this burgeoning asset class?
Even before the coronavirus impacted every facet of society, the BTR trend tapped into a unique housing need wherein renters started searching for more family-friendly neighborhoods with more outdoor living space and more square footage inside their homes. BTR properties arguably flourished during the pandemic as more Americans left their small apartment units and condos in densely populated urban centers for safer, socially-distantproperties in more sparsely populated suburban locations.
According to Forbes, while multifamily housing has been the standard for renters, new data indicates a trend toward families moving to the suburbs seeking single-family residences to rent. In fact, John Burns Real Estate Consulting found in its Single-Family Rental Analysis and Forecast that as of September 2020, rent growth increased 3.8 percent for new leases. It’s clear that demand for BTR properties is here to stay.