As elder residents are looking for a stable living situation, more and more are turning to renting, specifically to new homes built specifically for rent. Continue reading below to find out why more and more people are choosing to rent.
Foreclosures were all the rage back in the financial crisis and investors were scooping them up and renting them out. Today, investors are investing in build-for-rent. Continue reading to learn how this new shift affects the whole market.
Build-for-rent is on the rise with large institutional builders looking for investors. Check out this video to learn all about the #BFR market. Don't forget, SFRhub.com has BFR investment portfolio opportunities with incredible cap rates and NOI. Go to SFRhub.com to find BFR investment portfolios.
“This is just the beginning of a very long runway for the build-for-rent space,” said Michael Finch, principal of SVN | SFRhub Advisors, the first national, dedicated commercial real estate brokerage serving that sector. ERC Homebuilders will use SVN’s marketplace to sell its properties. “There is huge pent-up demand from institutional investors in the BFR market. We have a $2 billion backlog in requests from our clients for opportunities in this segment.”
The number of single-family homes built-for-rent increased over the course of 2018, as construction starts of this type of housing totaled 43,000 homes, compared to 37,000 for 2017. There were 10,000 single-family built-for-rent starts for the final quarter of 2018.
Have you thought about investing in build-for-rent? Build-for-rent communities are designed to fit the privacy and affordability needs of younger buyers shopping for a mortgage loan and boomers looking to downsize.
Home sales are decreasing according to Bloomberg. Though wages are rising, making homes reachable, the overall trend does not look good. Builders are definitely feeling pressured, as new home purchases have been dropping since 2016. What do you think this market shift will bring?