By Akash Akash
San Antonio's Boom in Built-to-Rent Homes: 9th in U.S.
San Antonio is now among the top ten U.S. metro areas for built-to-rent single-family communities, reflecting a nationwide shift towards rental homes as mortgage rates climb. This trend is particularly strong in regions where land is affordable, like the Southeast, Southwest, and Sunbelt. Built-to-rent homes, offering ample space and fewer maintenance demands, appeal to both families who cannot afford to buy and older adults seeking simplicity.
Overview of Built-to-Rent Homes in San Antonio
Significance of the Trend
With mortgage rates hitting near-record highs this year, built-to-rent communities have become a viable alternative for many. These developments provide managed properties with various amenities, attracting those who may struggle with the commitments of homeownership.
Growth and Popularity
San Antonio has experienced significant growth in this sector, with the number of built-to-rent homes rising sharply from 1,223 in 2019 to an estimated 4,622 by the end of this year. The appeal of these communities stretches along major corridors, such as I-35 between San Antonio and Austin, providing strategic living options within bustling metropolitan areas.
Market Dynamics
Experts point out that built-to-rent homes cater to diverse demographics, including families needing more room and older individuals looking to downsize. The affordability of land in certain U.S. regions facilitates the expansion of these communities, which can command rents as high as $2,500 monthly.
Concerns and Implications
While these developments offer numerous benefits, they also raise concerns among affordable housing advocates who fear that increasing focus on rental properties may diminish the availability of affordable homes for purchase. This shift could potentially exacerbate the housing affordability crisis in certain areas.
National Perspective
Nationally, the built-to-rent sector saw a 75% increase in completed homes from 2022 to 2023, with over 27,500 homes built last year alone. Currently, more than 45,400 homes are under construction across the country, underscoring the growing demand for these types of residential options.
The Bottom Line
As built-to-rent homes continue to proliferate, especially in markets like San Antonio, potential residents and investors alike are watching closely. The balance between providing affordable, flexible housing options and maintaining a healthy market for potential homeowners remains a key focus for urban planners and policymakers.
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