The Impact of Build-To-Rent

BTR is Here

Purpose-built rental communities-designed entirely for leasing rather than sales- known in the industry as build-to-rent, has become not only a popular topic of conversation in the real estate world, but a formidable player.  

In the aftermath of the housing crash, private and institutional investors jumped at the opportunity to buy, rehab and rent single family homes at discounts.  This trend continued through the covid era as long as rates were favorable. Initially, the BTR structure resembled this scattered SFR model, with houses mixed in with established for-sale or owner occupant houses.  This eventually evolved into the more deliberate communities we see today, with dedicated on site management and amenities. 

The core driver for this shift was the ability to scale faster with more predictable costs as opposed to rehabbing older homes.  It also allows the investor more predictable cash flow and lower turnover. Rental demand followed, as younger Americans are attracted to the hassle free lifestyle that it provides without sacrificing space. The banks have followed suit as well, offering favorable loan structures as they see this as a dependable asset class.  

How does Auben see the future of BTR 

Auben believes, like many others, that this model is here to stay.  There are billions of dollars of capital being dumped into the space with no end in sight.  In fact, Business Insider reports that nearly $50 billion in capital has poured into the space since 2020, and it’s growing. Of course, many of the large institutional giants like Blackstone and JPMorgan are backing developments.  But not all BTR developments are made with the intention of stacking gains for the major players.  

An opportunity 

 For individual investors, the opportunity is especially compelling. Auben’s upcoming exclusive offering brings institutional grade strategies to everyday investors. These premium products are in a high-demand market and offer seamless passive ownership and tailored benefits like 1031 exchanges, cost segregation, and reliable cash flow, all while keeping you informed and hands off. Reach out today to learn more about this off market opportunity.  

In short, BTR is reshaping residential real estate for the better. Whether you’re seeking steady income, portfolio diversification, or a path to long-term wealth, now is the time to explore what this sector can do for you. Team up with a forward thinking partner like Auben that’s actively building on this momentum, and let us help you reclaim the institutional advantage for your own portfolio.