The Newest Trend in Rental Is a Big Opportunity for Builders

As the number of foreclosures wanes and there are fewer distressed properties for investors to scoop up, the market for build-to-rent new construction is becoming more than merely a niche. Housing Wire notes that build-to-rent allows investors to buy newly built homes and rent them out. Because the houses are new, investors can charge higher rent and tenants often stay longer in a house with fresh paint and new appliances.

The market segment is particularly attractive to homebuilders, according to this HousingWire story as holding on to tenants rather than selling all their properties creates cash flow and continuity for builders who often have to look for and line up the next big project or subdivision after one is finished. Builders also profit if they sell an entire subdivision to investors who then rent out the new properties, which eliminates the cost and time for the builder to search for multiple buyers.

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