Middleburg Communities is partnering with Simmons Bank for a 260-unit built-to-rent project in Midlothian, Virginia, reflecting a $3 billion surge in this housing sector. The company emphasizes the appeal of single-family rentals, noting challenges in saving for traditional homeownership. Middleburg’s expansion includes developments in Charlotte, Charleston, Jacksonville, and Wilmington, totaling 1,800 units. Similarly, Pretium has invested $2.5 billion in 7,500 homes across 37 cities, addressing the housing shortage. These moves follow Blackstone’s $3.5 billion acquisition of Tricon Residential, underlining the growing significance of built-to-rent properties.
Bottom Line: Fresh investment in built-to-rent housing underscores robust demand amid challenges in traditional homeownership.
Neal's take
Since COVID, wages are up about 19.7%, and the typical home mortgage is up 111%. This is, by far, the widest gap in history. So, we are seeing big players like Blackstone and Pretium push more dollars into Build to Rent. Blackstone’s $3.5B acquisition of Tricon is particularly interesting, as we have the ability to scale up in a similar fashion. Bottom line – BTR is staying very hot with institutional groups.