Richard Belote’s dream home in Montgomery, Texas, seemed almost perfect. He, his fiancée, and their two huskies, Leto and Ryder, enjoy the space offered by their four-bedroom, 3.5-bathroom home, surrounded by friendly neighbors, new appliances, and the scenic beauty of the local lake. The only caveat? Instead of owning, they rent.
Build To Sell Vs Build To Rent.
My 2 cent. pic.twitter.com/Oe3ZdURdXR
— Mubby the Data Gee 🇳🇬 (@Femi_OfMainland) June 1, 2024
Belote, 46, is experiencing life in a “build-to-rent” community, a concept increasing in popularity across the U.S. These communities, historically favored by seniors, have recently begun to attract younger renters who find homeownership financially out of reach but seek an upgrade from typical apartment living. In 2023 alone, the construction of such rental homes grew by 45%, setting a record within the housing market and comprising 7.9% of all single-family home starts, as per data from industry researchers and a real estate investment trust.
Despite this shift from traditional homeownership, the demand for such living arrangements underscores a broader issue: the intense struggle many Americans face in finding affordable housing. A recent survey highlighted that two-thirds of U.S. citizens find it difficult to locate affordable homes in their areas. The reasons? Stagnant wages, a 7% mortgage rate, and a 6.5% increase in home prices year-over-year, making renting the only feasible option for many.
Build to rent housing construction is expanding over Americahttps://t.co/DJLHhGhFrC
— tempkenalt (@tempkenalt) December 18, 2023
Build-to-rent properties offer several advantages, such as community amenities, events, and the absence of maintenance responsibilities, which appeal particularly to families and those planning future homeownership. Belote himself views his current living situation as a strategic move towards buying a house, hoping for more favorable mortgage rates in the future.
However, this trend isn’t without its challenges. The increase in build-to-rent developments has sparked concerns about reducing the availability of entry-level homes, with some critics arguing that it could exacerbate the housing shortage. Nevertheless, proponents believe that these developments help stabilize home prices by adding to the housing supply and providing an alternative for builders during economic downturns, when fewer people are buying.
This Is The Final Nail In The Coffin For The Middle Class & American Dream
Build To Rent Communities are the new development projects taking off all over the country “In a Build To Rent Community, they never sell it. All of the houses go for rent.”
“If you wanna kill middle… pic.twitter.com/X2lnNaB9SN
— Wall Street Apes (@WallStreetApes) March 19, 2024
The surge in these communities also reflects a changing perspective on living standards, where the flexibility of renting becomes more desirable than the commitments of homeownership. This is evident in luxury build-to-rent setups like “Seneca at Southern Highlands” near Las Vegas, where high-income renters enjoy amenities like community gardens, private backyards, and solar-powered homes for rents ranging from $5,000 to $10,000 monthly.
As the build-to-rent sector grows, it continues to evolve, catering to a diverse range of needs and financial capabilities. While the future of construction may see a slowdown due to rising interest rates, the significance of these communities remains prominent, suggesting a lasting impact on the housing landscape and the American dream of what it means to have a ‘home.
Major Points
- Richard Belote lives in a build-to-rent community in Montgomery, Texas, enjoying the amenities and natural beauty but lacks homeownership.
- Build-to-rent homes are becoming popular, especially among younger renters, with a 45% increase in such constructions in 2023, comprising 7.9% of all single-family home starts.
- The trend addresses the affordable housing crisis, offering alternatives amid rising home prices and mortgage rates that make buying challenging.
- Critics worry that build-to-rent developments might reduce the availability of entry-level homes, but proponents argue they stabilize prices by increasing housing supply.
- Luxury build-to-rent communities cater to high-income renters, offering upscale amenities and flexibility, highlighting a shift in living preferences away from traditional homeownership.
Charles William III – Reprinted with permission of Whatfinger News
