We are well aware of the impact on different markets Covid has had in the past few years–global supply chains, material shortages, and increased demand in certain market sectors, just to name a few. One of those sectors is the single-family, build-to-rent market. A massive shift of the populus moving away from the city cores and into the suburbs or even into rural areas has shifted the real estate landscape, forever.
Prior to Covid, the housing market was steady and people were both moving closer to cities as well as the suburbs. Once the impact of Covid started to shut down manufacturing plants as well as lumber yards, the housing market stalled. Massive changes were felt across the country. The supply shortage caused home prices to skyrocket, which pushed many potential home buyers out of the market. During the pandemic, many intown dwellers sought to leave the city’s core and move to a lower-density community but found themselves unable to afford the extremely high home prices. This desire drove a shift in the housing market.
Built-to-rent has a long history, but the market experienced a cultural shift. Families searched for modern homes away from the city core with more space to comfortably accommodate remote working. This trend caused the build-to-rent market to explode. Developers and investors started to build entire subdivisions strictly for renters to meet market demand. Build-to-rent communities offer affordable, modern housing without a huge down payment and strict mortgage requirements. Two years into Covid and we aren’t seeing any slow down in the build-to-rent market. In fact, the opposite is happening. Demand is increasing as companies made remote/hybrid positions permanent.
What does this mean for investors? The build-to-rent market is primed for investment. The real estate investing landscape is changing as new technologies evolve. Similar to Robin Hood and other online investing platforms that specialize in the stock market, we anticipate that new technologies will emerge to allow individuals to invest in real estate with a focus on single-family, build-to-rent.