Moving to a new community or state can be a big transition.

For new residents, build-to-rent communities often become their first new address, offering them a chance to acclimate to a different place while enjoying all the comforts of home.

“Getting to know a new community doesn’t happen overnight,” said Steve Kimmelman, Founder and CEO at Redwood. “When residents are new to an area, it takes time to determine which neighborhood might be the best fit for their household, where their favorite amenities are located and where they ultimately might connect to friends and neighbors who enhance their lives as they integrate into a new place.”

According to a recent survey for the New Home Trends Institute, part of John Burns Research & Consulting, 62 percent of tenants in build-to-rent communities are from a different state. 

The survey includes results from more than 6,000 build-to-rent tenants nationwide and provides exceptional insight into this changing industry. This is the second in a series of pieces detailing those findings.

Within build-to-rent communities, the survey found fewer than one in five residents moved from the same zip code, while 37 percent of tenants came from the same state but lived in a different city prior to their move. One in four tenants moved from out of state.

“These residents often want to rent until they become familiar with the area,” Kimmelman said. “It’s a great way to try out a commute, see if you connect to a favorite community gathering place and get to know a neighborhood as a renter before you make a significant more permanent investment.”

The survey also revealed that most build-to-rent tenants are somewhat transient. The majority expect to live in their home two to three years, though one in five plan to be there at least five years, if not permanently. Only about one in 10 expected to be a one-year tenant.

“That shows plenty of opportunity for retention and relationship-building,” Kimmelman said. “At Redwood, because our apartment homes feel so much like a single-family home, residents quickly make it their own and feel part of the neighborhood.”

Across the build-to-rent market, the survey found most tenants, regardless of life stage, say their next living situation likely will be a transition to homeownership. The data showed that transition is particularly pronounced among young families, singles and couples, but it’s also true among mature households.

“In some cases, tenants are building homes and renting until they’re complete,” Kimmelman said. “The benefits of Redwood’s apartment homes clearly come into play for these situations, with spacious floor plans and attached garages that often serve as bonus storage.”

For those not planning to purchase a home, other plans include renting a different single-family home, purchasing a home that is not single-family detached or moving in with someone else.

“Build-to-rent communities can easily be a fit for people in transition,” Kimmelman said. “However, the underlying demographics are strong enough that even if they are shorter-term residents, they often become ambassadors of the community for others.”

Redwood participated in the New Home Trends Institute Survey along with several others in the industry. In part one of the survey, data indicates that build-to-rent tenants often have higher incomes and have previously owned a home. Redwood dives deeper into those findings here. 

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