Multifamily Developers Getting in on Built-to-Rent Market

The American dream is now available for rent. Renters want the lock-and-leave lifestyle and maintenance on demand and are finding it in build-to-rent single-family homes communities. Investors are flocking into markets and creating this lifestyle. This shadow market is no longer lurking — it’s becoming front and center. David Howard, executive director at National Rental Home Council (NRHC), led a panel discussion about this new and growing path to living in a single-family home with Jay Parsons, VP, head of economics and housing, RealPage; Jeremy Edmiston, senior managing director, Cushman & Wakefield; and Lisa Taylor, Senior Managing Director. NRHC member companies include the nation’s leading providers of single-family rental homes that collectively own about 300,000 properties and about 1.5% of the country’s inventory of 23 million single-family rental homes. About 51 percent of current single-family rental stock was built in the past five years. Greystar, the country’s largest apartment developer and manager, now has 3,500 BTR homes in its portfolio, spanning 13 states. It has another 4,300 in the pipeline, and is adding to its map, Taylor said. She said Greystar’s BTRs are about 96 percent occupied, a tick above the preferred 94 percent to 95 percent range. “We expect our BTR portfolio to grow to 30,000 units in five years,” said Taylor, who singled out Salt Lake City as an attractive market. “We’re changing the American Dream,” Taylor said. “Helping us to grow in this segment will be our ability to continually improve BTR operations and development – even if it’s something as simple as included outdoor outlets so our renters can plug in string lights – among other things, as we learn what most appeals to these customers.” Taylor said that in investors’ minds, BTRs are not as “scary” to own or manage as something such as active-adult liv...