More than 100 million Americans rent their homes, according to City Lab. Renting was once just for individuals who didn’t have a down payment or couldn’t secure a mortgage, but a growing trend has emerged. Due to an increasing number of Americans choosing to become a ‘lifestyle renter’, locations up and down the U.S. have started building luxurious rent-only communities in order to meet demand.
Transforming the property market
Colorado, Arizona, and Texas have all risen to the challenge of building rent-only communities. NexMetro Communities says they have built 2,800 rental properties in communities across all three of these areas so far, and work continues. In Austin, three active rental communities designed especially for the older population have recently appeared. However, the biggest trend among rent-only communities at present is family homes. Research shows that families are after houses rather than apartments, and want their homes to ooze luxury. As such, property developers in the area looking to expand their portfolio into the rent-only market can rest assured knowing that Austin home builders are capable of creating on-trend, opulent homes that will spark the interest of lifestyle renters. Features such as contemporary layouts and generous outdoor areas are advised in these community homes because they give renters the luxury lifestyle they want.
Luxury living
Luxury homes in the U.S. cost an average of $1.55 million, according to Redfin. But these communities are providing renters with luxury at a fraction of the cost. For example, Pradera, the 250 luxury unit that recently went up in San Antonio, has a pool, dog park and wash area, and community entertaining space. Whereas Colorado’s Commerce City’s development provides renters with a firepit, outdoor gas grill, shared pool, and shared hot tub. With these kinds of features on offer, it’s easy to see why these communities are growing in popularity.
A long-standing trend?
Research shows that over the past 60 years, house prices have surged by 112%. In comparison, wages have gone up by 50% during this period. As such, individuals are seeking out more affordable homes in a bid to cut costs. However, it remains to be seen whether this trend is one that younger generations will stick with. For years, homeownership has been the ultimate ‘American dream’, so there’s the possibility that these individuals are using rental communities as a stop-gap and to build equity before finally stepping foot on the property ladder.
Rental communities are the latest building trend to hit America. Multiple developers have seen the nation’s need for affordable family housing with added luxury and have stepped up to the plate to offer housing in close-knit communities that cater to the requirements of all.
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