The value of home has never been clearer. More than ever, people are seeking spaces that fit how they actually live—places with more room, privacy, and functionality. Meanwhile, demand has far outpaced supply. Limited home inventory and rising prices have created a fiercely competitive market, making it harder for many would-be buyers to break in. The typical age of a first-time homebuyer is now 38. As a result, a growing number of renters are looking for a better alternative—one that feels like home ownership without the barriers. That’s where build-to-rent comes in.
Build-to-rent has emerged as a smart solution to today’s housing crunch. This product type typically single-family homes and townhomes built specifically for rent, accommodates the growing need for private indoor and outdoor space without sacrificing community amenities that many existing renters are accustomed to. While it won’t solve the housing shortage on its own, build-to-rent is quickly becoming one of the fastest growing sectors in the American housing market. Here are three reasons why it should be on your radar, too:
1. The rental pool is growing and diverse.
Build-to-rent accommodates all different types of renters – from young millennials who are looking for a home but are priced out of the housing market, to those who seek space without the hassle and maintenance of home ownership, to boomers looking to downsize and enjoy the appeal of a lock-and-leave lifestyle. The product type is widely accommodating and appeals to a broader segment of the market than multifamily housing or single-family for sale.
2. It’s an affordable alternative to home ownership.
As home prices become prohibitively expensive and interest rates continue to rise, many would-be buyers are forced to continue to rent. Build-to-rent creates an opportunity for people to live in a single-family home without having to have a large down payment or endure the stress of bidding wars. These renters are also more likely to stay long-term, keeping lease-up high and turnover costs down for operators.
3. It fits today’s lifestyle.
People need more from their homes than ever before. Whether it’s room to work, room to relax, and thoughtful design that supports modern routines. A well-designed Build-to-rent community delivers that. Features like desk nooks, flex spaces, and private yards make them more livable, while community amenities like clubhouses, fitness centers, pools, and dog washes offer added value and convenience. Renters get more value and more livability, all in one place.
With traditional real estate investments shifting and the demand for better housing options growing, build-to-rent is proving to be a smart, future-focused move. It offers renters new choices and developers a strong, scalable opportunity.
For more information on how KEPHART can help you successfully enter this market, give us a call at 303.832.4474.
