The home buying journey gets more attention these days than it should, especially since the real estate market is still absolutely crazy in many parts of the country.
Although home ownership remains out of reach for many, there are more people than ever who are choosing – at least for now – to remain “forever renters”. But there is also a group among those who do not want to compete for million-dollar house prices, but still want to own a more modest home. For them, there is a real estate trend called build-to-rent that is more than happy to welcome them home.
The build-to-rent (BTR) trend offers all the conveniences and desirable benefits of owning a home in a developed community. In short, real estate developers build single-family homes and townhomes and then rent them out instead of selling them. And residents are eager to sign leases instead of getting approved for mortgages.
“Renting offers flexibility above all else — without a big mortgage, maintenance hassle or commitment to one place,” says Chelsea Werner, global real estate advisor at ONE Sotheby’s. “With BTR, you get brand new homes and often stunning amenities.”
Why is build-to-rent so popular?
The biggest demographic trophy goes to millennials, who crave the convenience and flexibility that renting offers. Many also remember the bursting of the real estate bubble and its effect on their parents at the time, so maybe that’s why they’re not so eager to be tied down to mortgages. And as we can see, renting doesn’t always deserve to take second place to home ownership.
Renting a BTR home definitely offers the flexibility they want, says Fran Lisner, agent at Daniel Gale Sotheby’s International. “You can move around and explore different locations without being tied down to one property,” she says. “It’s a great option for those who value mobility and comfort in their lifestyle.”
Werner agrees. “[BTR is] your space without the ownership nightmares and headaches,” she says. “Renting is really an opportunity to live without the strings. Consider freedom and comfort.”
Many people have continued to work from home after the pandemic, which is a big driver for more space at home. BTR offers the opportunity to have a larger space without participation and without talking about it being a “forever home”. In fact, more and more BTR residences are incorporating flex spaces so that WFH warriors can work hard and play hard at home.
Is build-to-rent right for you?
Like renting apartments, BTR prices will vary depending on the size of the house and its location. On average, 900- to 1,800-foot single-family homes or townhomes with monthly leases can range between $1,600 and $2,600.
These certainly aren’t the lowest rental prices — in fact, they might even be close to what you’d pay for a real mortgage. But for those tired of scrambling to save up for a down payment, it could be a good solution.
“When considering BTR homes, renters should look at the quality of the property and the amenities offered,” says Lisner. “These homes often feature premium finishes, modern appliances and access to exclusive amenities such as pools and gyms.” Even better? There is often a property management service that takes care of everything, so renting is truly a hassle-free experience.
Of course, owning a home is an investment, and renting is not. But the growing trend of BTR homes is an opportunity to enjoy all aspects of living in a single family home without a 30-year mortgage.
“While owning a home has its benefits, renting a BTR home can be a luxurious, stress-free experience with all the amenities and services you could ask for,” says Lisner. “Definitely worth considering if you’re looking for the ultimate living experience without the commitment of owning a property.”