Build-to-Rent projects are trending, and for good reason. These types of projects are gaining quite a bit of popularity as investors are looking for ways to cash in. 

The demand for single-family rental homes has caused builders to step up. Many home builders have started providing build-to-rent projects to fill this need in the market. According to an article from, the build-to-rent business is growing fast and has attracted many big-name builders.

Why Build-to-Rent Projects Make Sense

The number of renters in the United States has exploded. Many younger couples and families are simply not ready to buy or they may be a bit fearful of buying a home due to the crisis of 2008. 

In some markets, buying a home has become very expensive, but renting is still affordable. High demand for single-family rental homes has come about and many builders are creating entire communities of rental homes. 

Unlike an apartment, those renting a detached home get an actual yard and don’t have to share walls. In the same respect, renting a single-family home offers the same portability and flexibility of a lease. It’s also a lower maintenance way to live without any worry of handling the landscaping and there’s no mortgage debt.

Many renters don’t really care for the idea of having neighbors above and below. They prefer the privacy of a single-family home, which has made build-to-rent projects very appealing for investors. 

While some communities are exclusively build-to-rent properties, others are a mix of lease-to-purchase, build-to-rent, and traditional for-sale homes. The changing demographics and the landscape of the real estate market have caused many in the younger generations to look for alternatives to the traditional mortgage. 

Some within the industry have actually said they believe the American Dream may be changing. The housing crisis of 2008 certainly didn’t help and homeownership has been inching toward a 20-year low ever since. 

Massive Homes are Out for Many

Along with the changing demographics and the 2008 crisis causing many would-be homebuyers to remain, renters, most don’t want larger homes anymore. The bigger-is-better movement has slowed with many Baby Boomers downsizing and Millennials seeking out smaller homes. 

So many Millennials are saddled with student loan debt and feel as if they have to put off homeownership. They continue to rent because of this debt and the mobility it provides.

Baby Boomers, on the other hand, are fearful due to losing their homes during the 2008 crisis. Many are gun-shy and don’t want to purchase another home. 

Build-to-rent communities have started to fill the gap in the housing market caused by these circumstances. When these communities go up, they lease quickly and stay full. With so many renters seeking single-family homes for the outdoor space and privacy, investors are looking at B2R communities as a great choice.

Renters love these communities because of the full-service nature. Many build-to-rent communities provide everything necessary including 24-hour maintenance, lawn service, and trash valet. In addition, B2R communities also offer amenities and may even provide gated entries. 

Those would-be buyers not in a financial position to buy or gun-shy don’t prefer apartments. Instead, they want to live in a house, but don’t want to be tied down to a 30-year mortgage. This popular trend is likely going to stay as more and more potential homebuyers decide to remain as renters.

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