Looking for a single-family home to rent? Now is as good a time as any.
The Dallas metro area is one of the top U.S. markets for new rental single-family home communities, according to a new RentCafé report.
The Dallas area ranks third nationally with a total of 4,290 houses in built-to-rent communities. Houston is fourth with 3,600 rental units. The Phoenix, Ariz., area ranks first with 6,420, and the Columbus, Ohio, area is second with 4,780.
Breaking it down by city, Las Vegas ranks first with 2,520 completed rentals. Houston was second with 1,620 and Dallas fifth with 1,270.
Communities of houses built for renting have become the hottest trend in residential living. In 2021, a historical-high 6,740 new homes were completed in built-to-rent communities, according to Yardi Matrix, which provided the data in RentCafé’s report.
The nation’s largest rental homebuilder is Dallas-based Invitation Homes, which owns more than 80,000 rental homes. In North Texas, Phoenix-based NexMetro and Arlington-based D.R. Horton have emerged as the biggest built-to-rent developers with thousands of homes completed.
The trend is just picking up. An estimated 14,000 built-to-rent homes under construction, more than double last year’s total, are expected to be delivered this year.
What created the shift in the housing market to single-family rentals?
According to RentCafé, renters are looking for a lifestyle change that offers more space and privacy. Renting also combines the financial and leasing flexibility of a rental with the amenities and convenience of a professionally managed property.
Searches on homes for rent on RentCafé tripled in 2021 compared to 2020.
In the case of the Dallas-Fort Worth market, a CoreLogic analysis found that prices in the metro area rose 14.1 percent, or the sixth-highest in the nation in the past year. The median rent was $1,909 as of September.
“There is a misconception that the majority of renters are millennials when, in reality, you have everyone — including college students, empty nesters, families with kids, pet owners, and those wanting to downsize,” Shannon Hersker of Walker & Dunlop said in the report.
But COVID-19 also can be attributed to a changing dynamic in the housing market.
“Undoubtedly, coronavirus has also impacted upon this increased popularity,” Christopher Michael, architect and founder of archisoup, said in the report. “Many are now moving out of the cities and apartment living to seek out more space in rural and suburban locations.”
