Big landlords are jumping into the homebuilding business to make up for falling supplies.
More Americans are able to work from anywhere and are looking for larger spaces with outdoor areas.
The market is not being adequately supplied. David Singelyn is the CEO of American Home 4 Rent, which has built more than 100 rental-only communities in the last five years.
In the first quarter of this year, the National Association of Home Builders said that there were more single- family homes being rented than a year ago. 5% of the home building market is homes-built-for-rent, which is up from the historical average of 2.5%.
More than 220 rental homes with access to amenities including a pool and fitness centers can be found in the newest development by American Homes 4 Rent. Maintenance and landscaping are included.
The Murphys relocated to the community after selling their home in California because they were able to work from home. They rented a four-bedroom home for $2,400 a month, even though they couldn't afford to buy.
We don't know if the housing prices will stay where they are right now. "We didn't want to buy at the peak and then have them go down in a couple of years"
As they learn about a new area, the Murphys like the flexibility of renting.
Singelyn expects to build more homes for rent over the next few years because of the strong demand he sees.
How many inquiries are we receiving? How many times have you seen a show? We are getting applications on every home. It is two to three times greater than it was two years ago.
Toll Brothers is one of the companies investing in the build- for-rent market. Invitation homes went into a joint venture with Pulte homes to build more rental homes.
Investments in single- family rentals have grown greatly. $3 billion was invested in the sector in 2020. The figure increased to $30 billion in the year 2020. It is expected to reach $50 billion this year as larger institutional investors and homebuilders enter the market.
When millions of homes went into foreclosure during the Great Recession, American homes 4 rent got into the business. The company bought cheap distressed properties and turned them into lucrative rentals.
At the last housing peak, there were more than 11 million single- family rental households. After the housing market crashed, the figure rose to over 15 million.
The homes-for-rent are getting less affordable because of the tighter supply. Single-family rents in the US are up more than a year ago.
The shortage of single-family properties available for rent has pushed rents up at record levels. The number of single- family rental properties listed early this year was below pre-pandemic levels.
The Murphys are back in North Carolina to watch the market. Jake Murphy doesn't think homeownership is a part of the American Dream.
There are license plates from Texas and New York in the neighborhood.
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