Rent prices are rising faster than ever in the U.S. and investors are responding to this in a significant way. Home builders are now focusing on this highly in-demand segment of the housing market by constructing entire communities devoted exclusively to renters.
Nearly 100,000 built-to-rent homes have begun construction this year alone as investors devoted approximately $30 billion in to the sector. The nation’s biggest home builders including Lennar and D.R. Horton have incorporated these types of communities in to their business plans for the coming year.
The rising cost of homeownership and the limited selection of homes to choose from have new households looking for rental equivalents that include multiple bedrooms, outdoor space and the feel of a suburban neighborhood.
Today, conforming no-point 30-year fixed mortgage rates are averaging 2.875 percent and 15-year rates are near 2.25 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.biz, social media (#AramcoReport), or over the phone at (877) 700-0942 and your questions may be featured in an upcoming article.
