A recent Wall Street Journal story (reposted on Realtor.com) says single-family homes that were built to rent are emerging as the hottest corner of the U.S. property market. The report suggests that steep down payment requirements are causing people to stay on as renters, even as those rents are rising at a break-neck pace. In addition, they say a land-grab is being driven by growing investor interest in building homes for rent – especially in the south.
“Close to 100,000 built-to-rent homes will have started construction this year, according to estimates from Brad Hunter, founder of the Hunter Housing Economics consulting firm. Investors have poured about $30 billion in debt and equity into the sector in 2021, with many billions more in future commitments, Mr. Hunter said.”