5 Drivers of Build-For-Rent

Real estate investors small and big are turning to building new rental properties such as single-family homes and townhomes across the country, including in metro Denver. According to HunterHousingEconomics.com who tracks this business model closely Build-For-Rent or BFR starts this year will be close to 100k and will increase to about 180k by 2025 and demand will still outstrip supply in 2025. Here are the 5 drivers causing the BFR model to soar in demand—

1.   Household formation of 1.6 million and pushing higher. It may hit 1.9 million in the next few years.

2.   Millennials are having kids in large numbers and they want to raise them in suburbs with good schools, parks, and they want a yard.

3.   Millennials LOVE their dogs and thus want a single-family home to rent.

4.   They need more space inside their home to work from home or for home-schooling.

5.   Home prices are getting out of reach for many young families.

Unfortunately, this greater demand for rentals is causing rents to soar and they will continue to soar and millions of these Millennials will later wish they had purchased a home sooner as their rents rise 8%, 10%, 12% a year. We need to do everything possible to get these renters into their own home. This is why I am using these 3 tools—

·        We have closed 26 buyers with doWewn payment assistance loans since Covid started and we will continue to serve your clients this way.

·        In October I am going to start to host and teach FTHB “classes” at breweries and bars during Happy Hour. I have created a “class” titled “12 Questions FTHBs Need Answers To.” I will hand out these questions on note cards to each attendee for you and I to answer for them while drinking a great beer and sharing some yummy food together at the same time. If you would like to be a co-teacher with me please call me at 303.881.6374.