“These households value flexibility, privacy, and the convenience of professionally managed communities with modern amenities and maintenance-free living.”
In addition, homeownership remains challenging for many financially qualified households due to limited inventory, high entry costs and elevated interest rates, the company said.
BTR provides a compelling alternative, offering the benefits of a single-family home without the long-term commitment of ownership. Through its experience building more than 1,350 BTR units, HREP said it has discovered that product design is as important as site selection and capital discipline.
More efficient units with smaller floor plans deliver the privacy and space of a single-family home while keeping monthly rents attainable, it said. This approach has allowed its communities to capture a wider renter base and sustain demand even as new supply enters the market.
Investors in the BTR space benefit from portfolio diversification within rental housing and a resilient income profile supported by growing tenant demand and unique development efficiencies. The company noted communities can be delivered in phases and quickly stabilized as well as repositioned in response to shifting tenant expectations.
Source: GlobeSt.
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