The rental market is slowing changing. The aging population and many Millennials do not want to buy homes, they want to rent. Rather than renting apartments, they want single-family homes in nice neighborhoods.
Within the last decade, single-family rental numbers have been soring. To meet this demand, many developers have begun constructing neighborhoods of single-family homes intended only to rent.
To attract renters, these neighborhoods have all the amenities of traditional neighborhoods but with the management of an apartment complex. Many of these neighborhoods offer pools, workout facilities, and other various amenities. Yet, similar to an apartment complex there are maintenance teams that make regular repairs, lawn companies that maintain the yards and landscaping, and a leasing team to show available homes.
These neighborhoods are also being constructed within good, quality school districts to appeal to the Millennials with families. Yet, these neighborhoods are rarely constructed in areas where the value of land is extremely high. In certain areas of California, it would be difficult to buy the land, build the neighborhood, and still generate a sustainable profit. As of now, common states were these neighborhoods are being constructed include Nevada and Texas.
The future of neighborhoods built solely for renters is bright. Whether renters do not want to buy a home due to their credit score or the difficulties of securing a mortgage, these neighborhoods will provide a solution.
By Anna Hellman
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