Phoenix #1 in the nation in number of homes built for rent
As renters seek a lifestyle change that offers more space and privacy, built-for-rental single-family home communities have become the hottest trend in housing. 2021 was a banner year for single-family rental home construction, with 6,740 new built-for-rental homes completed. And the trend is on the rise: twice as many homes are now under construction, for a total of nearly 14,000 that will open their doors to tenants this year.
Cleverly described by some as “horizontal apartments,” communities of homes built for the sole purpose of renting out are becoming the hottest topic of residential living. But single-family rental is not a new concept. Although they proliferated in the aftermath of the 2008 housing crisis, this time is different. The pandemic has created an unprecedented demand among renters for space and privacy, which houses can meet much better than apartments.
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According to a recent survey of 3,300 renters on rentcafe.com, as many as 78% said they were interested in living in a single family home community. The survey confirmed the growing interest in single-family rentals that began to emerge last year, including on rentcafe.com, where searches for “homes for rent” tripled in 2021 compared to the year before. former.
What’s more, the race to build more of this type of in-demand rental is accelerating: In 2021, 6,740 new rental units in built-to-let communities were completed — the highest annual total to date, data shows. by Yardi Matrix. But that’s just the start of a trend that we’re sure to see a lot more of as the pace of construction is set to double from this year. Specifically, there are an estimated 14,000 built-for-rental homes under construction in the United States.
Currently, there are approximately 90,000 existing single-family homes in the United States in nearly 720 such communities designed specifically for rental. They include detached single-family homes, townhouses, duplexes, and even quadruplexes that come with a backyard or a garage — or sometimes both.
It’s easy to see the appeal of homes built for rental: the trend combines the financial and rental flexibility of a rental with the amenities and convenience of a professionally managed property, while living a lifestyle of single family Home. So everyone is interested, according to Shannon Hersker of Walker & Dunlop: “There is a misconception that the majority of renters are millennials when in reality you have everyone – including students, empty nests, families with children, pet owners and those who want reduce their workforce, she said.
Built-to-let communities present in suburban and urban areas
Because they require large lots to build on, rental housing communities are prevalent in low-density areas, with the majority (61%) located in the suburbs. “Without a doubt, the coronavirus has also had an impact on this increased popularity,” said Christopher Michael, architect and founder of archisoup. “Many are now leaving cities and apartments to seek more space in rural and suburban areas.”
This aligns with our survey of renters, which also revealed that in addition to the main reasons for choosing a single-family rental over an apartment – more space (29%) and more privacy (25%) – these types rental housing is also attractive to families. . Specifically, 19% of respondents think a single-family rental is more suitable for their family, especially if the community is located in a quiet, family-friendly suburban neighborhood.
Mapping the top 100 locations with the most homes built for rent reveals that 39% of these communities are located in urban areas, particularly in geographic regions where land availability permits. Although they are more likely to be found in urban settings in the Southwest, they tend to be more prevalent in suburban areas in the Midwest and Northeast.
Either way, single-family rentals are filling up fast, with occupancy in 2021 2% higher than apartments (97% vs. 95%) – demonstrating renters’ interest in living in a home. And, Hersker thinks the built-for-rental home trend was already on the rise: “The pandemic has just increased demand at a faster rate,” she said. “People want to live in less dense areas, in communities that offer more space.”
Phoenix ranks #1 metro for built-to-rent homes
the Phoenix Metro is at the forefront of rental home development with a total of 6,420 homes in built-to-rent communities. The area is also a leading metro in the construction of new apartments, making it one of the most coveted areas for renters in general.
Following, Columbus, Ohio, is the second most popular agglomeration, with 4,780 homes in built-to-let neighborhoods. On track to become one of the nation’s most prosperous employment centers, the area surrounding Ohio’s largest city has seen steady growth in population and employment in recent years.
Meanwhile, as a booming employment hub and a leader in new apartment construction, the The Dallas Metro is booming too in single-family rentals, with the third-highest number of home rentals in the United States at 4,290.
Las Vegas Top City for Built Homes for Rent
Although most cities lack the land needed for sprawling communities, 39% of single-family homes are located in urban areas. Las Vegas has an edge in this regard, ranking as the No. 1 city with the most single-family rentals (2,520). Coincidentally, Vegas is also home to the two largest build-to-let communities in the country.
Houston, TX has the second highest number of homes in built-to-rent communities – 1,620. One of the largest cities in the country by land area, Houston is able to accommodate large residential communities and meet to the high population influx it experiences as one of the most popular destinations for business relocation. Similarly, another city in Texas is also among the best markets to invest in rental housing: the city of dallas (in fifth place), currently has 1,270 completed rental units.
Arizona recorded five cities in the top 20. The most notable are Tucson and Phoenix — two cities with a growing number of rental construction projects that total approximately 1,300 completed single-family rentals each.
Largest Built-To-Rent Communities in the United States
Rising demand for housing has led to larger and larger communities, resulting in megaprojects that look like entire neighborhoods. In fact, the average built-to-rent community has around 125 single-family rentals, while some mega-communities may have as many as 500 homes and others may have as many as 800 homes. Here are the largest built-to-let communities in the United States:
Buffalo Highlands and buffalo highland Once known as Buffalo Highland I-VI and Buffalo Highland VII, VIII, IX and X. But now, with 819 rental homes each, the Las Vegas mega-projects are a happy neighborhood all on their own. Development of Buffalo Highlands began in 1988, followed by the Highland section in 1997.
West, Reunion at the Reserve believe that whatever type of home you need, they have it. And, with 805 homes up for rent, chances are they really do! What sets this community apart, in particular, is the resort-style living experience, as well as the lifestyle amenities typically associated with an apartment community – such as clubhouses, game rooms, fitness centers and swimming pools.
The picturesque sub-district of Gardens of Treviso. The 644 single-family home community in Katy, TX, was completed in 2021 and is already 99% occupied, according to Yardi Matrix.
Beyond their potential to become a significant force in the rental housing market, built-to-rent homes are also a welcome alternative for those who want to transition from renting an apartment or those who cannot buy into a highly competitive market, but are willing to pay more for a rental, Hersker said. “Typically, BTR units are larger than the average apartment, and renters see value in paying more for more space and additional storage.” She adds: “Living in a BTR community allows the tenant to socialize and share amenities, but also to have their own yard and space for entertaining.”
Find the top cities with the most single family rentals in each state by following this link (click each image for actual size).