The built-to-rent housing model has seen a boom in the last several years. In fact, as many residents look to settle down without the hassles of homeownership, luxury leasing neighborhoods could become the new normal. And, with the extremely hot housing market pricing many out of traditional mortgages, new luxury leasing communities might seem even better than ownership.
In many cases, these gated communities offer single-level, detached homes for lease with resort-inspired amenities including pools, spas, grilling stations, and gathering areas. Many newer homes feature incredible interiors with luxuries like private entrances, high ceilings, open floor plans, and outdoor patios.
An Excellent Alternative in A Hectic Market
Jacque Petroulakis is VP at NexMetro, one of the top built-to-rent businesses in the US. She sees a real draw in these dwelling types as the housing market heats up.
“The appeal of these communities is a best of both worlds lifestyle,” Petroulakis said. “With luxury leasing, residents get the benefits of single-family homes without the expenses of homeownership.”
As prices for down payments, property taxes, and closing costs skyrocket, rent-to-buy options provide affordable alternatives to traditional mortgages.
“So many residents in the Dallas-Fort Worth area are drawn to this idea,” Petroulakis added. “We saw the appeal years ago, but with more consumers priced out of the housing market, demand is really increasing.”
From an Investment Standpoint
Brad Thomas, a senior real estate and REIT research analyst, sees real potential in these properties as well.
“I definitely see real boom potential here,” Thomas said. “In fact, the growth profiles from some of these companies suggest year-over-year increases of up to 19 percent. They have unique management models founded on efficiency which definitely lend themselves to long-term investors.”
Feels Like Home
Tori Smith is a resident at Avilla Trails, a brand new built-to-rent community in Fort Worth. She signed a lease when her home purchase fell through several months ago and hasn’t looked back.
“I really like it,” Smith said. “It’s different because it feels like a home but operates like an apartment. I actually found my place on Apartment Finder after trying to buy a home in the area. I used to live in Downtown Dallas but needed a place with a yard for my dog. This place has all that. It’s a great option for those seeking a flexible alternative to owning a home.”
