3 Reasons Build-to-Rent is a Popular Sector for Real Estate Investment
Build-to-rent is one of the fastest-growing sectors of the housing market and a trending topic in real estate. According to a recent survey of 3,300 renters on rentcafe.com, 78% of respondents said they were interested in living in a community of single-family homes.
There are several interchangeable terms used to refer to build-to-rent properties: BTR homes, build-for-rent (BFR) homes, B2R homes. However, the concept, and the opportunity, remain the same. Unlike standard high-rise apartments, build-to-rent homes are designed to be an ideal option for individuals searching for a long-term rental residence that feels more like home.
Top 3 Reasons to Invest in Build-to-Rent
Build-to-rent is considered a popular opportunity for accredited investors. The affordability and demand for rental housing may lead to impressive ROIs from single-family homes. This 2020 article from Forbes shares how yields can be higher from build-to-rent homes versus traditional apartments. Additional reasons to invest include:
1. The Market is Growing
The race to build single-family rentals is spreading fast. There were 6,740 Build-to-Rent homes completed in 2021 (the highest amount to date) and the market is expected to double in 2022 with twice as many homes under construction.
2, Renting is on the Rise
For the past 14 years, the percentage of renters has been rising in the United States. Due to student loan debt and other financial struggles, many millennials do not feel financially ready for homeownership. This, in addition to the housing shortage and pandemic-related housing shifts, has led to a space in the housing market that BTR has been able to fill successfully.
3. BTR is a Proven Concept
BTR has passed through its initial concept phase and the model has been successfully operating for several years. Because of this, operational data is readily available, enabling investors to make more educated decisions.
How Redwood Fits into the BTR Equation
When looking at the signature strategy that has driven Redwood for over 30 years—the focus on creating quality, single-story rental homes for residents—Redwood has been in the BTR space longer than the term has been popular jargon. Each Redwood apartment home is found in a real neighborhood and laid out in one of our signature open floor plans, with two bedrooms, two bathrooms, an attached garage and a dedicated street address.
Plus, unlike others in the industry, Redwood is a 100% ground-up construction development and property management company that doesn’t sell its neighborhoods of apartments once they are leased up.
Redwood's Equity Program
The Redwood Equity Program is a unique investment opportunity that allows accredited investors the chance to connect with Redwood and our team to build upon a 30+ year history of successful expansion and the goal of reinventing the apartment home.
We are proud to offer the same level of customer service we offer our residents to the investors we partner with for each apartment neighborhood. Contact the Redwood Investor Relations team by calling 216.360.9441 or filling out a contact form to find out more about Redwood’s upcoming deals.
