Single-Family Rentals Continue to Grow
Digested from Multifamily Executive
As demand increases for the flexibility of single-family ownership, some builders have begun building communities of these homes.
During the past decade, the number of single-family rentals have surged, outpacing both single-family for-sale and apartment housing, according to Multifamily Executive’s Lauren Shanesy.
Conventional wisdom says economic conditions brought on by The Great Recession led to the popularity of single-family rentals.
“The current economic climate has created a perfect storm for the single-family rental market’s success,” Shanesy writes. “Student debt, a tight job market, and the inability to save for a down payment have kept a number of potential home buyers out of the market.”
But economics does not tell the entire story. For instance, downsizing Baby Boomers want to live in single-family rentals because they can live in a home similar to what they’re used to without sinking retirement cash into a down payment. For others, dreams of owning a home might not be as strong as they were for their parents’ generation. And other single-family renters may want the flexibility to move with a job change.
As demand for single-family rentals has surged, companies, such as AHV Communities and Christopher Todd Communities, have started building communities of these homes. These communities often come equipped with pools, spas, barbecue areas, fitness centers and event lawns.
“Single-family rental community developers say they don’t see themselves as a threat to single-family or multifamily builders, but rather as an alternative that provides a housing product type for renters with a specific set of needs,” Shanesy writes.