A NorthMarq investment sales transaction last March involving the sale of five single-family rental home communities surrounding Phoenix is a piece of a much larger trend. The Wall Street Journal profiled the growth of the single-family rental market in a January 8 article and spoke with Trevor Koskovich, president of Investment Sales at NorthMarq, who represented the seller of five gated rental communities around Phoenix.
The pace of building single-family homes has outstripped the ability of the average family to afford the purchase price, despite historically low borrowing costs. However, surging home prices haven’t kept Americans from moving to the suburbs. Instead of pursuing home ownership, families are renting single-family homes in communities that were built as rentals.
Investors of all sizes are devoting billions of dollars to build-to-rent single-family housing projects. “Every institutional investor is considering this space,” said Koskovich
According to the Wall Street Journal, “Home builders are embracing the business of selling houses wholesale to landlords, and even teaming up with them to build neighborhoods that blur the line between houses and apartment complexes.”
Read more in the Wall Street Journal article: “Rental Home Construction Climbs as Purchase Prices Surge”