Homeownership has long been at the heart of the traditional American dream. Today, while many people still want to live in single-family homes, not all of them want to buy. According to a recent report, as the demand for detached residential housing continues to rise, build-to-rent developers may have opportunities in today’s renter’s market.
Rental Market Demand
According to a recent article, the increased demand for single-family rental housing may be attributable to multiple factors. Currently, members of the millennial population, one of the largest demographics, are seeking single-family homes without the obligation to purchase. Some believe this trend may be due to affordability and a preference for not wanting to be tied to a specific location. The coronavirus pandemic has also contributed to increased interest in the single-family home rental housing market. Renters are looking for distance and have been attracted to the square footage and expanse that these properties provide.
Developments in the Arizona Market
In Arizona, one of the nation’s top developers in this market recently completed the sale of the largest Build-To-Rent property (by unit count) in the country. The sale of Christopher Todd Communities At Stadium, a 313-unit community of single-family one and two-bedroom detached houses with private backyards, took place in Phoenix. According to reports, last year, Christopher Todd Communities formed an exclusive partnership with Scottsdale-based national builder Taylor Morrison to build properties for its developments. In 2020, the company reportedly sold five communities in the greater Phoenix market totaling 943 houses.
Christopher Todd Communities
Phoenix-based Christopher Todd Communities develops for-rent, single-family housing communities and sells them to investors. Christopher Todd Communities are single-story and single-family homes that are pet-friendly and have smart features. The gated communities are less dense than standard multifamily areas, and each neighborhood has resort-style amenities. Christopher Todd Communities properties also offer renters distance from one another. Besides providing the added premium of quiet, those concerned about social distancing will have more space between themselves and their neighbors.
Company CEO Todd Wood commented, “We are so proud that all of our communities experience unprecedented high rent rates, even during the height of the pandemic.” According to Wood, the company’s rental customer base “want to be mobile in their work environment, be able to get up and move. So from a millennial standpoint, a rental house that gives them space and amenities is an attractive solution.” According to Wood, although many Christopher Todd Communities tenants are in a financial position to buy a home, they prefer not to for now.
Wood also commented that the company is “extraordinarily grateful for the incredible demand our innovative rental product has commanded, both from the investor side as well as the consumer side, propelling our company. As a part of our national expansion, we have announced that Greystar [real estate] will assume management of two existing communities in the Phoenix area, with more communities potentially in the pipeline.”
When navigating through a real estate issue in Arizona, it’s critical that you have an experienced real estate attorney to protect your interests. Laura B. Bramnick is an experienced Arizona real estate attorney who can help you manage all aspects of your Arizona real estate matter. If you are seeking an exceptional, client-driven real estate lawyer in Phoenix and throughout the State of Arizona, contact Laura B. Bramnick to schedule your consultation.