With Billions Invested, Build-To-Rent Brings Changes to Apartment Industry

August 30, 2024

Built-to-rent single-family housing is gaining traction, attracting billions in investments. Legacy MCS in Austin has shifted focus exclusively to build-to-rent projects, with rapid growth and expansion plans. The industry is evolving, with major players like Blackstone and Invitation Homes investing billions into new developments. Legacy’s success underscores the appeal of faster construction times and early tenant move-ins, driving revenue sooner. Despite premium rents, demand remains strong, with properties leasing up quickly. Operational changes are emerging, including dedicated property management arms for build-to-rent communities. With its financial advantages and high demand, build-to-rent has become an attractive asset class for developers.

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Bottom Line: Built-to-rent housing presents lucrative opportunities amidst growing demand and evolving industry dynamics.

 

Neal's take

Its interesting to see multifamily builders switching exclusively to BTR. We are seeing many builders making the same pivot, which is great for us. We are not a builder, we are a developer, and we need BTR specific builders, so these kinds of pivots are good news for us.