A recent Fannie Mae study showed the US had an affordable housing shortage of about 4.4 million total units. This is both due to undersupply and increasing costs. Many believe “build-to-rent” communities can help.
Build-to-rent refers to entire neighborhoods of largely single-family homes constructed for the explicit purpose of being rented out. These communities can often be built faster as the builder can produce “in bulk” and doesn’t have as much back and forth with individual homebuyers.
In 2023, more than 120,000 build-to-rent homes were produced. This is roughly double the amount 5 years ago. And the trend is here to stay, with production estimated to be around 150,000 by 2027.
The growth is easy to understand as build-to-rent communities have a big draw:
Affordability – A down payment can be a huge financial burden for families. Renting doesn’t have this barrier to entry. And while renting, people can still save for the future home they will own.
Low Maintenance – Many build-to-rent communities offer maintenance services as well. Typically, this includes mowing, landscaping and other outside upkeep.
Community – Built-to-rent homes often come with amenities like pools, fitness centers and green spaces. Designed to bring neighbors together, the ‘community’ feel is often stronger than in a traditional apartment complex.
Keep in mind even when renting, it’s important to have the right insurance. A renters policy is different than a homeowners policy. That makes sense as a renter doesn’t own the physical structure. But, damage to or loss of personal belongings, like furniture and electronics, can still occur. That’s where renters insurance comes in.
The good news is that Westwood can help! Westwood offers renters insurance – no matter if it’s a build-to-rent home or a traditional apartment. Learn more and keep your belongings protected.
Please Note: This article is for general informational and educational purposes only. It does not represent any specific insurance policy and does not modify any provisions, limitations, or exclusions of any current policy.
