NAVIGATING CONSUMER DEMANDS AND SHIFTING MARKETS WITH
BUILD-TO-RENT
Scott Curtis, Snowdon Residential
October 10, 2023
The Rise of Build-to-Rent in Modern Housing
In the current landscape, where homeowners are besieged by the instability of mortgage rates and a noticeable scarcity of single-family homes, a recent phenomenon is escalating in importance: the Build-to-Rent (BTR) movement. This trend is revolutionizing the concept of attainable living, offering a fresh perspective on American housing dreams that seemed increasingly out of reach for many.
Understanding the Build-to-Rent Phenomenon
Often, there's a tendency to lump Built-to-Rent (BTR) housing together with traditional Single-Family Detached (SFD) homes, but this comparison is misleading. BTR properties are distinct in several key aspects, which are essential to recognize for a comprehensive understanding of what sets them apart. These criteria include being purpose-built for leasing, designed for privacy and efficiency, and being part of a community that offers a wealth of amenities. Without these characteristics, a property cannot truly be considered part of the BTR category. The expansion of BTR in the late 2000s highlighted its increasing popularity, driven by the desire for amenities that reinvigorate the traditional image of home for renters and developers alike.
A Shift Towards a New Housing Paradigm
This movement towards BTR housing is not a step backwards but a progressive shift in response to the changing needs and realities of modern living. The recent years have made it clear that trying to replicate past housing models is not the answer. Instead, BTR offers numerous advantages over traditional homeownership, such as more space, privacy, and a community lifestyle, without the burdens of homeownership. These benefits meet the needs of those who find themselves excluded from the current housing market, providing a viable and attractive alternative.
The Appeal of Build-to-Rent
BTR developments offer a blend of detached and semi-detached homes, eliminating common annoyances of apartment living like upstairs or downstairs neighbors. These communities are designed with privacy in mind, often including features like attached garages and private entrances. Beyond the physical layout, BTR neighborhoods offer communal amenities—such as parks, gyms, and social/work spaces—that enrich the living experience without the financial burdens typically associated with homeownership, such as HOA fees.
Millennials and the Drive Towards Build-to-Rent
The surge in BTR's popularity is particularly pronounced among millennials, a demographic now navigating the complexities of pet ownership, family life, and the flexibility of remote work. This generation is increasingly drawn to the suburban lifestyle, seeking spaciousness and community over the cramped conditions of urban living. The prohibitive costs of homeownership, coupled with a volatile economic landscape, have made BTR an appealing alternative for those aspiring to live in suburban settings.
Societal Trends Fueling the Build-to-Rent Wave
The shift towards BTR is not merely a reaction to market conditions but is also driven by deeper societal changes. The pandemic has reshaped our understanding of work and life, diminishing the allure of city living in favor of more flexible, suburban, or rural homes. Millennials, in particular, shaped by their experiences of the housing market crash, prioritize experiences and flexibility over the traditional milestones of property ownership, gravitating towards BTR communities that offer new, maintenance-free living options.
The Future of Housing: Embracing Build-to-Rent
BTR is not just a temporary housing solution but a forward-looking approach that is redefining residential living. Its emphasis on eco-friendly construction and innovative design speaks to a growing demand for sustainable living options. As the BTR market evolves, companies like Snowdon are at the forefront, continuously adapting and innovating to meet the dynamic needs of modern renters. This commitment to excellence and innovation ensures that BTR communities not only meet but exceed the expectations of today's house hunters, paving the way for future developments in the housing industry.
