THE BUILD TO RENT CONCEPT - RENTALS REIMAGINED Why Build to Rent in Cape Coral, Florida?
by Robert Knight, White Stone Developments
B uild to Rent takes the best of SFRs and upgrades the experi- ence by creating new construction homes with elevated finishes and professional property management that will attract the “rent by choice market.” The rent by choice market is selec- tive and looking for quality finishes with granite countertops, hardwood cabinetry, stainless steel applianc- es and smart home technology. The pandemic has further focused B2R design to include a home office, more space and a backyard without all of the responsibilities and hassle that come with homeownership.
THE B2RMARKET ISVERY ATTRACTIVETOMILLENNIALS ANDBABYBOOMERS
We have 95 million millennials who can’t buy (43% have less than $3k for deposit) and 75 million baby boomers who are moving into retirement age but instead of selling the larger home they needed while raising their family, they are opting to sell and rent and use the equity from the sale to help with the cost of retirement. NATIONALGROWTHOFTHE B2RMARKET According to the National Association of Home Build- ers, in 2017, 37,000 homes were built as rentals. In 2018, that number jumped to 43,000. About 16 million rental properties today are single-family homes, and another 13 million rental households are expected to be formed by 2030, according to the Urban Institute. Rents for single family are growing fast at 4.5% annually now compared with 3% rent growth for multifamily apart- ments, according to John Burns Real Estate Consulting.
ADDITIONALREASONS TO INVEST INB2R • B2R is proving to provide solid returns on A class assets.
• Interest rates are at a historic low and locking in a 30-year fixed rate mortgage is fantastic for maximizing cash flow but it is also a great hedge against the coming inflation. • New construction rents are higher, have less turnover, attract higher quality renters. • Less hassle and cost with maintenance issues, 1-year bumper to bumper and manufacturer appliances warranty, 10 year HVAC warranty and 10 year structural warranty. • 6-month build cycle with homes rented normally in less than 30 days.
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