As many Americans await potential relief in the housing market, some real estate developers are capitalizing on the high demand by investing in build-to-rent neighborhoods. According to Fox Business, the construction of build-to-rent homes has reached record levels. In 2021, 9,978 such homes were built, and that number increased to 15,691 in 2022. Last year, more than 27,000 new build-to-rent homes were constructed, with more communities popping up in larger metros, such as Phoenix, Dallas, and Atlanta.
Ian Peterson, president and owner of Integrate Properties, says one reason for the growth in popularity among developers is because build-to-rent communities often have higher retention rates than traditional apartment buildings do.
"A typical apartment complex will average 50% to 55% turnover on an annual basis, and really in these types of communities, we average between 35% to 40% turnover," Peterson said. "It's really capturing folks, giving them the luxury lifestyle that they want, and they don't have a reason to leave. And so, they get to know their neighbors. They're all friends."
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