The build-to-rent home craze is one of the hottest multifamily trends nationwide, spurred by a hot economy, job creation and a cross-country migration.
As people move to burgeoning cities for new jobs, they are looking for places to live and often want more space than traditional multifamily homes.
BTR homes are constructed as single-family, detached homes or attached townhomes. While they are made to rent, they offer the amenities traditionally enjoyed by apartment dwellers, such as dog parks, activity lawns, pools and grilling stations. Some BTR homes may even offer more private space, like private fenced-in back yards or patios, garages or a floorplan with a home office.
The segment is expected to keep growing nationwide. According to rentcafe.com and data from sister company Yardi Matrix, nearly 14,000 units will open their doors to renters this year across the country.
While still a small segment compared to traditional multifamily (330,000 traditional units were delivered in 2021, marking a record year for new apartments), BTR is growing, fueled by trends in how we’re living due to the pandemic, higher prices and supply issues for first-time home buyers and other lifestyle choices.
BTR communities are rising from coast to coast, led by the Southwest and Sun Belt where great climates and cultures attract newcomers. A peek at the Southwest tells the BTR story.
Phoenix has some of the largest built-to-rent communities, and it makes sense as the city often is considered the birthplace of the BTR concept. But other markets are close behind. Consider Colorado as a case study.
Recently, two B2R communities were announced in Colorado Springs, two outside of Boulder and five for Denver, giving the mountain state a strong pipeline of more than 3,000 build-to-rent units under development, according to various news reports.
As one of the top developers and managers of multifamily communities in the country, we at RangeWater Real Estate founded our Storia division in 2020, dedicated to building BTR across the Sun Belt.