Build-to-rent communities are gaining in popularity amid a difficult real estate market
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- เผยแพร่เมื่อ 22 เม.ย. 2024
- With mortgage rates now above 7%, the supply of homes low, and demand remaining high - all according to a Zillow report - new homebuyers would need to make over six figures to afford a house. The US housing market's seemingly insurmountable barrier to entry has left younger generations resigned to rent for the foreseeable future, while some of the market has switched to a build-to-rent model.
Mill Creek Investment Management President David Reynolds joins Wealth! for Real Estate: The New Reality to give insight to Americans on how to navigate this evolving housing market.
Reynolds lays out what this new model will look like: "It's going to be comparable to apartment living if you were talking about a life location. By its nature, a lot of build-to-rents are a little further out so you would have to be comparing to like apartments. But you're getting so much more with the build-to-rent and it's fulfilling a need... especially for groups like the Millennial generation that has outgrown apartment living and is looking for more space and more privacy and their families are growing. So... build-to-rent really fills a nice need there."
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That’s the issue. Build to rent not to sale. So the supply is there it’s just not offered for sale
But more rental options for tenants means many tenants will no longer have the need to purchase a house. Less demand for housing will keep home prices more stable
@@HQSCJIPZ the problem with that is that you get a rent increase every year. When you buy at least that doesn’t happen.
@@icecold8974 you don’t think property taxes, maintenance, and most of all the cost of equity and debt capital increase each year too?
He’s just talking about how corp are capitalizing off the situation. It’s not at all about helping affordable housing.
The corporation benefits by generating income through the property, the tenant benefits by having more options on where to rent. Many of these corporations are publicly traded, so you can also benefit by owning shares through a mutual fund
why is build to rent housing "affordable" for the corporation but yet the average american can not afford a home? Is the corp taking short term loses?
They build the communities at scale. They buy a chunk of land, subdivide it into a hundred lots that are collectively worth more than the original chunk.
Then they use economies of scale to build houses on the lots cheaply, I'm sure using the cheapest of materials and shoddiest craftsmanship.
In the end they can slap up 100 homes far more cheaply than if they tried to buy 100 homes individually at market prices.
LOL LOL LOL!!! We are all sheep with our eyes closed. Watch the World Economic Forum and then put the puzzle pieces together and then you will understand what's really going on.
"You will own nothing and be happy" 🙃
Question: what companies is in the BTR market, I’d like to buy or purchase stock in the companies, it would be great if I can get a couple of names and ticker symbol.
So still not affordable 😅
Increase rates
YOU WILL OWN NOTHING AND BE HAPPY.... WAKE UP PEOPLE!!!
Interesting.
Light a match
Turn off the damn music!!!
😂😂😂😂😂😂😂😂😂😂 I hope those homes stay empty. For sale or nothing