How Multifamily Builders Can Benefit From Single-Family Boom

John Burns Real Estate Consulting says multifamily builders need to follow the single-family homes, specifically the rapidly developing new-home submarkets. In its latest Apartment Analysis and Forecast, JBREC says the future looks bright for suburban apartments and gloomy for urban. What can help boost the rental market are buyers who choose to rent prior to moving into their newly built homes. Builders are especially busy with nearly all standing inventory sold, so new-home buyers must wait nine to 12 months before their homes are even constructed. Renting where that new home will be could be ideal.

Here are some examples from across the country:

Wesley Chapel (Tampa MSA)
Located about 30 minutes north of Tampa, Wesley Chapel offers numerous master-planned communities targeting families and empty nesters. The submarket’s strong momentum is a function of attractive residential communities that offer suburban retreats with walking and biking trails, resort-style pools, good school districts, and a growing retail base all for home prices buyers can afford. Class A apartments in Wesley Chapel are fully occupied (96%+) with few concessions offered, despite a considerable amount of new construction in recent years. Lease-ups for new communities range from 17–19 per month, and leasing agents report a large number of renters are either home buyers, waiting for their homes to be built, or renters who hope to buy when they have the opportunity.

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