The Rise of Build-To-Rent Residential Housing Models
The housing market has been undergoing significant changes in recent years, with traditional models of homeownership and rental properties facing competition from a new trend – build-to-rent residential housing. This innovative approach to housing is quickly gaining popularity, and it’s not hard to see why. With its unique features and benefits, build-to-rent is poised to redefine the real estate industry. In this article, we will take a closer look at this emerging trend and explore its rise in today’s market. 
The Concept of Build-To-Rent Residential Housing
Build-to-rent (BTR) refers to a type of residential housing where a developer builds an entire property with the intent to rent out the units to individuals or families. This approach differs from traditional rental properties, where landlords often convert existing homes into rental units. In a build-to-rent model, the entire property is designed and built for the sole purpose of renting.
The Appeal of Build-To-Rent
There are several reasons why build-to-rent is gaining traction in the real estate market. First and foremost, the convenience it offers to tenants is unmatched. Unlike traditional rental apartments, which are often outdated and in need of maintenance, build-to-rent units are brand new and equipped with modern amenities. This makes them highly attractive to tenants who value comfort and convenience. Additionally, build-to-rent units are typically managed by a professional property management company, which means tenants can expect high-quality service and efficient solutions to any problems they may encounter.
The Benefits for Investors
On the flip side, investors are also drawn to the build-to-rent housing model. Due to the increasing demand for rental properties, BTR units have high occupancy rates, ensuring a steady and reliable rental income for investors. Additionally, developers and investors can save on construction costs by building multiple units at once, instead of building individual homes. This can lead to cost savings and better returns on investment. Moreover, the build-to-rent model offers investors a long-term commitment from tenants, reducing the risk of prolonged vacancies and associated costs.
The Rise of Build-To-Rent in the Market
The build-to-rent concept has been around for quite some time but was mostly limited to larger cities like New York and Los Angeles. However, in recent years, the trend has gained significant momentum and has now spread to smaller markets across the country. According to research by the National Multifamily Housing Council, the number of build-to-rent units in the United States is projected to increase to nearly 6% of all rental units by 2023, up from just over 3% in 2019.
The Impact of the Pandemic
The COVID-19 pandemic has played a major role in the growing popularity of build-to-rent residential housing models. With the uncertain economic climate, many people are re-evaluating their housing choices, and renting is becoming a more attractive option. Furthermore, as remote work becomes the norm, individuals and families are looking for more spacious and comfortable homes, and build-to-rent units are meeting that demand. The pandemic has also highlighted the importance of high-quality property management, which is a key feature of the BTR model.
The Future of Build-To-Rent
As the demand for rental properties continues to grow, it’s safe to say that the build-to-rent trend is here to stay. Investors and developers are taking note of its potential and are actively pursuing BTR projects. In the coming years, we can expect to see more build-to-rent communities across the country, catering to a wide range of tenants and offering a variety of amenities and services.
In conclusion, the rise of build-to-rent residential housing models is reshaping the real estate market. With its unique features and benefits for both tenants and investors, this trend is poised to have a significant impact on the housing industry. As more people opt for rental properties, build-to-rent will offer an attractive and innovative alternative to traditional homeownership and traditional rentals. So, if you’re looking for a modern and convenient living option, it’s worth considering a build-to-rent unit.
