Built-to-rent suburbs may start popping up around the U.S.

Built-to-rent suburbs may start popping up around the U.S.

Built-to-rent suburbs may start popping up around the U.S.
If those not quite sold on the idea of buying a home, a community in Arizona may have a solution for you. Located 30 miles outside of Phoenix, a subdivision built by Christopher Todd Communities contains 222 brand new homes with tile roofs, two-car garages and plenty of backyard space. But not a single one is for sale. Instead, the development is intended exclusively for renters.

Communities like this are expected to continue to rise from the dirt in areas across the U.S. as the heated housing market remains too hot for many to afford. Built-to-rent developments are managed much like apartments with staff and maintenance teams and short and long-term leases available.

Today, just about six percent of new homes built in the U.S. each year are constructed for renters but real estate consulting firm Hunter Housing Economics projects this to double by 2024.

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 (866) 381-8888 and your questions may be featured in an upcoming article.