By Kyle Backer | AZ Big Media
Build-to-rent housing was a hot topic of conversation at September’s Valley Partnershipbreakfast. Planned from inception to be rental homes, these units typically are grouped together in one area, similar to a master-planned community, and all of the residents are renters. Though the term “build-for-rent” can include townhomes and duplexes, the event’s panel of four experts focused primarily on single-family detached houses.
“Five to 10% of new build homes are now build-for-rent,” says Heather Personne, managing principal at Evolve Ventures. “Phoenix is the third largest market by unit count for single family and build-to-rent housing, and it has the lowest vacancy rate since 1984 because of persistent demand and our continued under supply.”
Build-for-rent communities have become a popular option for families who aren’t ready for or don’t want the responsibilities of homeownership but desire more space than what an apartment affords.
“It’s not a myth that people don’t necessarily want to own a home anymore. They want to be flexible, and they want to rent something before they decide if and where they want to live in a particular city. Build-for-rent is definitely filling a niche,” notes Keaton Merrell, managing director at Walker & Dunlop.
