Thanks to the pandemic, the 2021 housing market saw a huge rise in single-family rental construction as families sought to transition away from apartment living in favor of the single-family home. Unable to leap into the homebuying market yet longing for both privacy and space, many families chose the appeal of built-to-rent (BFR) homes. The perks include the flexibility of leasing with the amenities and convenience of a professionally managed property packaged neatly in a single-family home. The trend is expected to be hotter than ever in 2022. 

Phoenix leads the way as the #1 metro for BFR homes, followed by Columbus, Dallas, Houston, and Riverside.  

Build-To-Rent Defined 

Whether referred to as “build-to-rent,” “BFR,” or “B2R,” these interchangeable labels describe the same concept: detached units specifically built for long-term rental. While a BFR can look like a traditional, suburban-style family home, it can also fall under one of several building plans, including: 

• Horizontal apartments: a tight cluster of professionally managed, freestanding, single-family residences. 
• Duplexes: two living units in one structure. 
• Row homes: homes built side-by-side, sharing a common wall. 
• Small lot homes: individual homes built close together on smaller-than-average lots.  

Advantages of BFR for Renters 

• Opportunity to secure a larger-than-apartment-sized residence without the financial obligation of purchasing a home 
• Greater potential for privacy, more storage, and personal outside space 
• The comforts of homeownership without the maintenance hassles and expense
• Often BFR communities offer higher-end communal amenities  
• More likely to spur a tight-knit, neighborly environment 

The Advantages For Investors  

Consumer Demand: PEW Research reported stats that support this renting trend— 

• 65% of households headed by people younger than 35 were renting 
• 41% of households headed by those aged 35-44  
• The large number of current twenty-to-thirty-somethings will cause the demand for single-family housing to increase 

Renters Love New Homes 

Who wouldn’t jump at the opportunity to rent a brand-new home? For families looking for longer-term housing situations, the chance to secure a new home, free of the something-always-needs-replaced syndrome that tends to plague older homes, is incredibly appealing.  

More Desirable Renters 

BFR communities attract the most desirable renters: couples and families interested in long-term living arrangements, committed to doing their part to keep the property and the overall neighborhood nice. In addition, they appreciate that these neighborhoods offer family-friendly amenities with nearby schools in the “better” areas of town.  

Faster Absorption Rates 

Renting a home lends itself to a much faster process than selling a home. Instead of waiting for a lengthy, drawn-out closing, investors can be collecting rent from renters that are excited to have secured a great home.  

Flexibility in the Future 

Collect rent now, and for the foreseeable future, from good, stable renters who will care for the property. If you choose to sell the property down the road, your renters may then be in a position to purchase the home they’ve come to love. The great thing is that you have options.  

Build-to-rent houses have much to offer for both investors and renters. You owe it to yourself to check out the possibilities.  

About Rentals America   

Rentals America provides full-service property management for residential rental properties. Our team is completely dedicated to property management and we’re here to help landlords navigate the rental market.