Rental house hunters can enjoy the privacy, space and perks of suburban living without the mortgage due to the rise in properties in the single-family home rental market.
Jim Belfiore, president of Arizona residential market research firm Belfiore Real Estate Consulting, said there’s a market movement away from apartment renting in light of new rental communities.
“People are still renting in heavy volumes and there is a shift from a preference toward renting apartments toward renting single-family detached homes when they’re available,” Belfiore said.
Scottsdale-based Colony Starwood Homes announced an acquisition of more than 3,100 single-family rental homes this week, 157 of which are in the Phoenix area. This acquisition is in line with a trend of companies and developers recognizing the demand for single-family detached rental units.
The Arizona based real estate development company Christopher Todd Communities, announced plans for their second luxury, single-family home rental community in May.
The new community, located near 99th Avenue and Lower Buckeye Road in Phoenix will consist of 50 one-bedroom houses and 104 two-bedroom houses, according to a press release.
Many experts think that communities like these may be the future of the single-family rental market. They feel that this is going to last through 2018 and 2019 with all the future development projected. At this time there are around 25,000 for rent units in various stages of development in the Phoenix area.
Though renting is hot, Belfiore says another trend may be emerging: a rise in home purchases. “People anticipate mortgage interest rates rising in the future and more people have improved their credit since the housing bubble,” he said. “We’re going to see more and more people buying.” This fact is good for those that want to purchase investment single-family homes. It is much easier to sell than an apartment in a complex.
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