Developers are exploring new ways to meet continued housing demand. One of the latest trends is built-for-rent housing. This type of housing is becoming increasingly popular, particularly among younger adults who are looking for affordable, flexible housing options.
There is an important distinction between built-for-rent housing and flip-for-rent housing, which converts for-sale housing to for-rent. Most of the built-for-rent product produced by NAHB members adds to the existing housing stock to meet a specific market demand for rental units with unique amenities relative to traditional apartments.
To alleviate confusion and potential concerns around built-for-rent housing, NAHB’s Land Development Committee formed a working group to study and produce education on the topic. The group created an introductory primer, “Renters by Choice: The Truth about Single-Family Built-for-Rent Housing,” to describe what the phrase “renters by choice” means: The people who live in these communities are there because they want to be.
Single-family built-for-rent housing provides a lifestyle option to those seeking additional flexibility compared to buying, and amenities such as yards and garages that many large apartments do not offer. This type of housing can be a steppingstone between renting and buying for young families and be a good downsizing option for aging adults. Offering additional housing options to meet the diverse needs of families and individuals can help chip away at the housing crisis.
The document further describes benefits to home builders and local communities, and can serve as a great introductory piece for NAHB members and all engaged in housing to start a discussion on this type of housing.
For more information, visit NAHB’s Land Use 101 Toolkit.