The concept of building real estate to rent has been around for quite some time.
However, building new single-family homes for the sole purpose of renting is something new and enticing. Real estate investors and developers are jumping to the opportunity created by housing shortages and to fill the increasing economic demand for build-to-rent single-family homes
During an interview with CNBC in 2019, the executive vice president of SVN/SFRhub Advisors described how much money is ready to be deployed into build-to-rent housing: “We’ve got clients, multiple, well over a couple of billion dollars-worth of capital looking to place in this space.”
Over the next few years, SVN plans to acquire up to 6,000 single-family and build-to-rent homes for its clients. SVN isn’t the only company doing this. Toll Brothers announced a “$60 million joint venture to form a build-to-rent company, according to CNBC in 2019. Additionally, Lennar is experimenting with build to rent communities.”