BB Living is one of several home builders that are getting in on build-to-rent projects, as the single-family rental market continues to gain prominence.
Eclipsed by the financial power of large private equity firms on the single-family rental market for existing homes, brothers and BB Living co-founders Matt and Sam Blank decided to get into build-to-rent projects for entire communities of single-family homes. As renting is now more affordable than buying in the majority of U.S. markets, BB Living seek to meet this demand. Mark Wolf of AHV Communities, with four built-for-rent communities in Texas in its portfolio, tells Curbed, "We’re like a country club or apartment environment, [with] a community that has a social component as the centerpiece ... The dog park, the fitness center, pools, the clubhouse with the maintenance and management team daily. That’s the difference.”
The rise of SFR operators has been one of the most publicized developments in real estate since the financial crisis. They bought foreclosed single-family homes en masse after the crisis and formed companies to rent out those homes. The companies have come under fire for excessive rent hikes and fees, itchy eviction triggers, and shoddy maintenance, among other things ... Built-for-rent single-family houses are nothing new. Since the early 1980s, there have been at least 10,000 built-for-rent houses produced over any given 12-month rolling period, according to data from John Burns Real Estate Consulting. In the mid-2000s, built-for-rent production peaked at 45,000 units over a 12-month rolling period. Since the housing bust, built-for-rent production has steadily risen.
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