I never heard the term BTR Build-to-rent before this year. I thought investors bought homes. I had no clue the current trend is to simply build your own complete subdivision of rental SFH.
That is competing with sales inventory in a time when supply chains shortages are slowing down home building, often by months and months.
Meanwhile, they are not building anything small at the low end for entry level buyers. It is really hard to get into your first home today. Move up buyers will hit a wall when interest rates go to 5%.
Oh, they have plenty of equity in their homes, but a lot of people are going to look at their current home payment at 3% on a $200,000 loan. Then when they see what it will cost to service a $400,000 loan at 5%, they are just going to stay put and pay that cheap mortgage, freezing up housing even more.
A lot of us are going to be renting for the foreseeable future.
We are being pushed into a nation of renters.
Unfortunately, that is correct. There is going to be a certain percentage of people who will never own their own home.
Blackstone bought whole subdivisions in AZ, CA, FL & NV during the Great Recession. They then built houses in them just to rent out. They knew that many of those people who were foreclosed would HAVE to RENT for at least the next seven years.
We are becoming more like Japan in our cost of housing prices in comparison to income.