As the prices of homes continue to go up along with the demand for single-family homes, many investors are banking on the prospect of increased demand from renters.
According to Realtor Magazine, tens of thousands of single-family homes are being built by savvy investors, but they are not intended for sale, they are going to be rental properties.
This has a few different meanings for the real estate market. These homes will not be any relief to the inventory shortage, they will actually create more competition since land, money and resources are going into homes that will not be for sale. The price of single-family homes will continue to go up. Another result of this is that the predictions made about the US turning in a renter nation are even closer to becoming true.
All the major real estate investors in the country are considering the build-to-rent path, because they are predicting a slow down in buying due to high prices and low inventory.
According to Taylor Morrison Home Corp, over the next few years about 5% of newly built homes will be sold to investors and not actual families/residents. The normal rate for this so far has been 1%.
LGI Homes Inc states that build-to-rent homes took up 10% of their overall 2020 sales. John Burns Real Estate Consulting stated that between fall of 2019 and fall of 2020 over 50,000 homes had been built for the sole purpose of renting.
Many buyers and sellers have been waiting to take any steps in hopes of the market and prices leveling out or in hopes of increased inventory, however, this may take a much longer time than they’d like.
Are you worried about waiting too long or missing your chance? Talk to Amin Vali Real Estate Investing, as an experienced investor himself, Amin Vali understands the intricacies of the market and will be able to help you navigate these issues with success.
Are you an investor wondering about opportunities? Amin Vali has the right resources, the right contacts and the know how to get things done.