The Past, Present, and Future of Single-Family Rentals
There is no doubt that when people talk about investments,
are a minefield to beat. If you compare with other assets like stocks, real estate investing has set the bar and has successfully shown logical revenue results among stakeholders.
What Are Single-family Homes and How Are They Different From Multi-family Rentals?
The real estate market defines single-family rentals as remarkable assets structured as individual properties, generally, with lawns and garages separating each homestead. You can distinguish them from multi-family rental properties since the latter has more than one dwelling unit.
The National Association of Home Builders talks about the growth of single-family rental homes in the face of the world pandemic on their website. Now that living is going back to "normal," many families still choose to live in single-family rental spaces and maximize what they can do in having more living space. Are single-family homes built to boost the future of rental housing? Let us refresh the past, present, and future of single-family rentals.
How Did Single-Family Rental Market Begin?
The history of single-family homes is known to have always been dominated by two significant members. First are the residents in the properties and couples who rent these homes out. Second, single-family rentals have become a haven for renters who would like to begin their journey investing in real estate. They do not pay expensive equity, and they can live in more space, mid and high-rise properties.
When the values of homes deflated because of the Great Recession, several investors have invested in single-family rentals and have these be rented out. This is the starting point of the growth of single-family rentals. It grows by the year, and it became a long-standing trend of singles and newly married who want a pleasant environment to start raising children, have a yard, and more space to move freely.
Single adults who worry about not being welcomed in owning a home due to student loans and not having the budget to pay a down payment have somehow found an option in renting out a unit in single-family homes. They need to pay a mortgage and follow the terms that institutional ownership sets.
We have seen positive rent growth in recent years, but this still means home companies only have
of single-family rentals in the United States.
Why is Single-Family Housing Market Gaining More Attention Today?
There are still many Americans who face challenges owning a home. This predicament makes them turn to the following and more feasible option: single-family rentals. There are
buildings that are specially constructed for this demographic. A build-to-rent, sub-urban, single-family community, with cul-de-sac streets.
The New York Times has written that some search for rental properties for single-families, a growing number for two years now and covering
, starting in 2019. This makes single-family homes the fastest-growing in the housing market.
What they call BFR or built-for-rent is gaining more attention since this sector continues to press forward, from 2% of how single-family homes start from 1974-2007, this
to 5% beginning in 2008 until the recent year.
Single-family home rents boast competitive resources in terms of supporting local communities and stakeholders. Institutional investors have shelled out approximately a larger share of
million in residential property taxes, supporting community schools, parks, and other essential services.
These single-family rental investors also generate approximately 8,000 jobs in local communities by hiring local contractors and vendors. If that is not what you call good data for single-family housing, we do not know what is!
Where Will Single-Family Rentals Be in the Next 10 Years
A sizeable single-family home company and those in similar industries continue to practice diversity and inclusivity in the workplace. According to the National Rental Home Council, they employ 43% females and people of color for 46%.
The pandemic presented us with a perfect opportunity to see the demands of home prices in the stock market. The economy has been exquisite in weathering the storm as more and more people are vaccinated. As a result, there is only one way that we see for single-family home rentals: up.
The pros envision that there will be continuous growth in housing supply with approximately
single-family rental space locations being built this year, and it is a growing number that goes beyond our time.
The same goes with the construction sector; we can anticipate an increase in demand for new buildings, including secondary markets like Phoenix, Charlotte, and several cities in Florida. In addition, cities with known low property costs will have a chance to market their location to investors of single-family home rentals.
We are slowly getting used to the home setup of work and study, and more renters will opt to prolong their contracts with owners. The Census Bureau declared in the past year that the median household income is $67,521, which is lower than 2019's $69,560. This is a decrease of 3.2 % among family and nonfamily households.
Renting has become trendier.
Still, according to the Census Bureau, many are renting nowadays than in the last 50 years. So, to more millennials and those who are most likely to choose home rentals than homeownership, let us review some of why you are opting to rent rather than buy.
Home mortgages mean you are committed to the property for about 30 years or more.
The sabbatical will be conditional since you always need someone to tend your place, and you need to pay for home maintenance and renovations.
There is insurance that binds you to certain decorum.
Taxes and fees for homeowners are pricey and sometimes complex.
How Can Opportunity Zones Help Investors?
Pintar Investment Company
has been in the business for more than a decade. We are headquartered in San Juan Capistrano, California as we continue to enhance our investment strategies on impeccable appreciation and desirable cash flow and provide redemption and liquidity, which is not commonly known in this area.
Pintar Investment Company, led by our founder and CEO, Jeff Pintar, continues to focus all efforts and energy on ensuring we fill in any lack in home construction for single-family rentals. Opportunity zones work best for go-getter investors because of the 2017 tax laws. This opportunity zone tax difference allows investors to shelve the taxes based on capital gains by turning those gains into funds that invest in land properties that are considered low-income.
Since single-family rentals are attractive communities to live in, we have mastered ways to help you achieve capital improvement quickly without being concerned about acquiring an old building. Pintar makes sure all investors will occupy new construction. We have partners that have been around in the construction industry who knows locations for opportunity zones. We shorten the time investors have to wait by searching for existing assets that have never been occupied, developing them for single-family rentals, and providing faster cash flow throughout the funds.
We stay true to our word to PROTECT, PRESERVE and GROW our clients' wealth. Be with us as we envision and make it happen—Built-to-rent single-family homes with an individual enjoyable yard, cul-de-sac streets, and self-contained individual renters of new constructions.
If you need help in investing in a product type that continuously increases demand for single-family rentals, email us! Discuss your plans with us!