Build-For-Rent Construction Growth to Nearly Double by 2024, According to Brokerage Firm Strata SFR
Cash-Strapped Millennials Drive Build-For-Rent Boom
CHARLOTTE, N.C., June 30, 2021 /PRNewswire-PRWeb/ -- Build-for-Rent single family homes are likely to double their share of new home construction by 2024 as debt-ridden Millennials enter their prime housing years. According to Strata SFR, a Single Family Rental and Build-For-Rent Brokerage Firm, Build-For-Rent homes will reach double-digit share of new construction, compared to 6% share today.
Millennials, consumers born between 1981 and 1996, are now the largest demographic in the United States and have the largest share of record-level $1.6 trillion in student debt. This is lowering their ability to purchase a home. As they begin to build families, many want a house instead of an apartment, paving the way for a boom in single- family rental home construction.
"The Build-For-Rent sector showed tremendous growth in the past few years and shows no signs of slowing down," said Adam Stern, CEO of Strata SFR. "Entry level housing in general is scarce today and consumers entering their prime family years want to have a home with a yard and nice amenities. It will drive many out of traditional apartments and into rental homes."
In addition to the benefits to renters, builders and investors alike are well positioned to take advantage of the coming boom in Build-For-Rent construction. For builders, Build-For-Rent provides another path to profitability. For investors, they can find cash-flow positive rental homes that will likely continue to increase in value. One of the challenges for builders and investors alike is simply finding each other. Strata SFR is committed to making that process quick and efficient, helping both builder and investor take advantage of all that the Build-For-Rent sector has to offer.
Since its inception in Jan. 2020, Strata SFR has brokered more than $300 million in Build-for-Rent sales between builders and institutional investors, including the sale of a 55-unit Build-For-Rent development in Charlotte earlier this month.
"It's becoming more challenging to source and put together these types of projects, particularly acquisitions of completed SFR homes such as our recent deal in Charlotte," Stern said. "We are happy to have been able to leverage our Network and resources to get this deal done for our client and a large institutional investor. We anticipate bringing together at least half a dozen new build for rent projects in the coming 12 months."
About Strata SFR
Strata SFR is a purpose-built company focused on the Single-Family Rental Sector. We bring together Build-For-Rent projects and lead the disposition of SFR Portfolios with a primary focus on the Southeast United States. Based in Mooresville, N.C., in Metro Charlotte, the company was founded in January 2020. To date, it has brokered more than $300 million in single-family rental home sales between builders and institutional investors.
Media Contact
Michael J DeVilling, WestShore PR, +1 2488754207, [email protected]
SOURCE Strata SFR
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