Why Are So Many Build-to-Rent Communities and Duplexes Popping Up?
If you’ve been noticing a lot of new build-to-rent (BTR) communities and duplexes sprouting up lately, you’re not alone. These new sleek, modern rental properties that seem to have everything you could ever want—pools, fitness centers, communal spaces, you name it. So, what’s the deal? Why are so many of these communities being built right now? Let’s break it down.
People Want Flexibility
Millennials and Gen Z: The younger crowd, especially millennials and Gen Z, are all about flexibility. They’ve got student loans, they’re starting families later, and they love the idea of being able to move for a new job or just for a change of scenery. Owning a home ties you down, while renting lets you pick up and go as you please. It used to be the American dream to own a home, but the younger generation no longer view it as a requirement. They want the home, but without the hassles of home ownership.
Baby Boomers: On the flip side, a lot of baby boomers are downsizing. They don’t want the hassle of a big house or yard work anymore. Renting in a BTR community or a duplex gives them a cozy, manageable space with added perks like single-story homes that are easier to navigate.
Money Matters
Affordable Living: Let’s face it, buying a house these days is expensive. According to the San Antonio Business Journal, throughout April the median sale price for U.S. homes hit a record $383,725, up more than 5% from a year earlier. The increase comes even as the supply of homes also has gone up, with 10.2% more new listings compared to the same time last year. High interest rates have kept mortgage rates above 7%. These increases make saving for a down payment and the other costs of home ownership difficult.
Investor Interest: From an investment perspective, BTR properties and duplexes are a goldmine. There’s a huge demand for rentals, meaning these places stay occupied, providing a steady income for investors. It’s a win-win situation.
The Lifestyle Perks
All-in-One Living: BTR communities can be like living in a resort. They offer amazing amenities—think gyms, pools, coworking spaces, and even concierge services. It’s perfect for anyone who wants a lifestyle upgrade without the commitment of owning.
Hassle-Free Living: When you rent in a BTR community, you get professional property management. That means no more worrying about fixing a leaky faucet or mowing the lawn. Everything is taken care of, making life a lot simpler and stress-free.
Urban Living and Smart Land Use
Efficient Use of Space: In crowded cities, space is at a premium. Duplex developments make the most out of available land by housing more people in a compact area compared to single-family homes. This is crucial in urban areas where space is limited.
Revitalizing Neighborhoods: BTR projects can breathe new life into run-down or underutilized areas. By developing these communities, cities can rejuvenate neighborhoods, attract more businesses, and create vibrant places to live.
The Benefits of Renting
The boom in build-to-rent communities and duplexes is all about meeting the needs of modern life. People want flexibility, affordability, and convenience, and BTR developments deliver just that. They offer a lifestyle upgrade without the responsibility of homeownership. Whether you’re a young professional, a downsizing retiree, or someone in between, these communities provide a compelling option for a hassle-free, amenity-rich living experience. As our lifestyles and needs continue to evolve, it’s clear that BTR communities are here to stay, reshaping the way we think about home and community.
But What About Homeownership?
While renting has its perks, let’s not forget the age-old wisdom that homeownership is one of the best ways to build wealth. Owning a home means building equity over time, which can significantly boost your net worth. Each mortgage payment reduces your loan balance, increasing your stake in the property. Plus, homes typically appreciate in value, meaning your investment grows as the market rises. For example, many homes in San Antonio that were purchased in 2019 at $260,000 are now valued over $390,000. Which means these homeowners now have over $127,000 in equity. When you own a home your monthly mortgage payments are working for you; when you rent your monthly payments benefit the owner. Homeownership also offers tax benefits, like deductions on mortgage interest and property taxes, which can save you money. In the long run, owning a home can be a solid financial strategy, providing stability and a valuable asset to pass on to future generations.
So, what do you think? Is owning a home still important? Leave a comment down below with your thoughts.
By: Jennifer Welch