Build-to-rent (B2R) housing for single-family homes is the new trend for real estate investors in 2022. In 2021, 6% of homes built were build-to-rent properties, and according to a National Apartment Association source, that percentage is expected to double by 2024.
Explore the increasing popularity of build-to-rent housing and what it means for investors and property management companies in the New Orleans area.
The New Trend in Build-to-Rent Housing
The rising trend in build-to-rent housing is that housing developers are building single-family homes in neighborhoods intended for tenants to rent rather than buy. This shift towards building single-family homes for rent reflects changes in the mentality of Millennials and Gen Zers looking at houses.
Many families post-pandemic struggle to obtain a mortgage loan and can’t afford the loan if a lender approves them. Families also prefer flexibility if they need to relocate for work or school. Rental contracts are more attractive than investing in a 15 or 30-year mortgage because they provide flexibility while still offering a stand-alone property’s privacy and square footage.
How Build-to-Rent Housing Benefits Investors
While some build-to-rent properties include duplexes and horizontal apartments, many investors are jumping on the trend of buying build-to-rent row homes and small lot homes. These properties are smaller than average single-family homes, sometimes as small as 600 square feet.
The benefit to investors of purchasing build-to-rent housing is that these properties tend to attract tenants with average to high incomes who rent the property for long periods. Single-family rentals are typically closer together and smaller than average single-family homes. This design makes purchasing B2R properties easier to maintain, especially when investors use an efficient property management company.
Work With Certain Property Management
Certain Property Management offers professional management services for investors and rental property owners looking for property management in New Orleans.
If you are looking for build-to-rent single-family home property management services or condominium management in New Orleans, contact Certain Property Management. We are a full-service property management company serving New Orleans and the surrounding locations like Lakeview, Mandeville, and Kenner for those focused on quality rental property management.
The future of property management lies in build-to-rent housing. Follow our blog to stay up-to-date on the condominium news for properties in the greater New Orleans area, including townhomes, apartments, and condominiums.
