Atlanta’s build-to-rent industry is steadily expanding, and doesn’t show signs of stopping anytime soon, says experts.
According to data from Yardi Matrix, the metro area ranks third overall in the nation for the highest number of build-to-rent single-family units completed in 2022, falling behind only Dallas and Phoenix. A total 808 single-family rentals were constructed in greater Atlanta last year, a 10-year high for the metro area.
Atlanta is one of six metro areas in the Southeast to make Yardi Matrix’s list of single-family rental units completed last year, besting the next-ranking metro, Greenville, South Carolina, by approximately 200 units.
The build-to-rent housing strategy traces its origins back to the 1980s, but the industry found footing in the aftermath of the 2008 financial crisis, as developers began purchasing foreclosed homes in bulk and transforming them into rental properties.
With build-to-rent single-family homes, residents enter long-term leases as opposed to obtaining and paying a monthly mortgage and other fees related to homeownership. In exchange, community facilities and other amenities are usually tended to by an on-site or off-site property manager or team, eliminating the need for residents to handle landscaping work or home repairs; such actions are generally covered in a monthly rent.
Developers and investors profited even more from the business model following the introduction of the pandemic, when the imposition of hybrid and work-from-home business models motivated workers to search for larger homes in rural and suburban areas.
The build-to-rent formula has fared well over the past decade in the Southwest and in states like Texas and Florida, with companies relocating their headquarters and offices and housing prices reaching seemingly unattainable heights for residents considering buying a home.
Doug Ressler, manager of business intelligence at Yardi Matrix, said the BTR model is…
Read the full article here
