3 Reasons Build-to-Rent is a Popular Sector for Real Estate Investment

Redwood Living, Inc. • May 23, 2022

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.

Redwood Bellevue South 25th Street named 2025 Multifamily Development
By Redwood Living, Inc. March 28, 2025
Redwood Bellevue South 25th Street has been honored for addressing a critical housing need and contributing to local economic growth in the Omaha, Nebraska market.
Talking touring - renters name in-person tours as major factor in deciding where to live
By Redwood Living, Inc. March 24, 2025
When it comes to deciding on a new apartment home, residents generally prefer to see their space in person first.
Redwood Recognized for Online Reputation and Resident Satisfaction
By Redwood Living, Inc. March 6, 2025
Redwood is proud to announce that its commitment to exceptional resident experiences has been recognized with two prestigious accolades: the Elite 1% ORA® Power Ranking by J Turner Research and Multifamily Executive, and the Resident Choice Awards powered by Opiniion.
By Redwood Living, Inc. February 10, 2025
Strategic investments in new neighborhoods combined with the success of the current portfolio resulted in a remarkable year for Redwood Living, Inc.
By Redwood Living, Inc. January 30, 2025
In a recent episode of The Rent Roll with Jay Parsons, host and industry expert Jay Parsons spoke with Steve Kimmelman, Founder and CEO of Redwood Living, Inc. about his expertise and Redwood’s success in the BTR industry over the last several decades.
Maintenance matters: BTR tenants want on-site maintenance
By Redwood Living, Inc. January 15, 2025
According to the 2024 Build-to-Rent Tenant Survey, on-site maintenance is “a very important factor in build-to-rent tenants’ rental decisions.”
Redwood Living Inc BTR Tenant Survey Flooring and storage
By Redwood Living, Inc. November 27, 2024
Ample storage and quality flooring are among the amenities build-to-rent tenants are seeking most as they decide where to live. Storage is a particular pain point, especially in horizontal apartments, according to the 2024 Build-to-Rent Tenant Survey.
More build-to-rent tenants say they rent because they want to
By Redwood Living, Inc. October 25, 2024
An increased number of build-to-rent tenants say they’re renting by choice, according to the 2024 Build-to-Rent Tenant Survey.
Midway through 2024, Redwood reports strong results
By Redwood Living, Inc. August 15, 2024
Redwood reports out on its success thus far in 2024, with an outlook on the rest of the year.
Amid market fluctuation, multifamily can remain key investment strategy
By Redwood Living, Inc. August 9, 2024
The CBRE 2024 Global Multifamily Investor Intentions Survey found that among all major real estate sectors, “multifamily remained the top acquisition target this year."
More Posts
Share by: