A Surprising Housing Trend Is Sweeping the U.S. – Why Built-To-Rent Communities Are About To Redefine The Market

As the housing market becomes pricier and fewer people can afford to buy homes, an unexpected solution is spreading across the U.S. – built-to-rent communities. These developments, filled with single-family homes designed exclusively for renters, are becoming an appealing option for those who want a house but can't manage the steep cost of ownership right now.

Richard Belote, a Texas resident who rents a home 90 minutes outside Houston, feels renting is a temporary but necessary compromise. "It's a good steppingstone," he says, noting that sky-high interest rates have made buying impossible for now.

Don't Miss:

• A billion-dollar investment strategy with minimums as low as $10 — you can become part of the next big real estate boom today.
• This Jeff Bezos-backed startup will allow you to become a landlord in just 10 minutes, and you only need $100.
• These five entrepreneurs are worth $223 billion – they all believe in one platform that offers a 7-9% target yield with monthly dividends

"Just really kind of crossing our fingers that those rates go down," he adds, hoping he and his fiancee can someday jump back into the homebuying market.

Belote is far from alone. A recent CNN poll revealed that 86% of renters nationwide say they simply can't afford to buy a home. Even more striking, 54% believe they might never own one. Still, despite the doom and gloom, a separate poll found that 81% of renters hope to own their own home someday.

Trending: Commercial real estate has historically outperformed the stock market, and this platform allows individuals to invest in commercial real estate with as little as $5,000 offering a 12% target yield with a bonus 1% return boost today!

The desire for homeownership is still alive, but affordability is the elephant in the room. "House prices have increased by over 40% in just four years," explained CBS News business analyst Jill Schlesinger. "There are a lot of people out there who really, really want to be in homes, and they just can't afford to get there."

This growing problem has paved the way for built-to-rent communities, which first sprouted in Phoenix during the Great Recession. These developments feature smaller, cottage-sized homes designed with higher density. They're now popping up in cities across the Sunbelt, from Phoenix to Atlanta to Dallas, as more people seek alternatives to the traditional housing market.

See Also: Amid the ongoing EV revolution, previously overlooked low-income communities now harbor a huge investment opportunity at just $500.

Brent Long, who leads the build-to-rent expansion for Christopher Todd Communities in Arizona, explains that their tenants come from all walks of life, from Gen Z to Baby Boomers. "It's really renters by choice and renters by need," he says.

Long doesn't believe the concept detracts from the classic American dream of owning a home. "I think it solves some issues that are out there in terms of affordability and availability."

Trending: Warren Buffett once said, "If you don't find a way to make money while you sleep, you will work until you die." These high-yield real estate notes that pay 7.5% – 9% make earning passive income easier than ever.

One such renter is Cassie Wilson, who lives in Phoenix by choice. For her, the arrangement is perfect. "I can live here in a house that is fully kept up by someone else," she says. While she hopes to buy a house one day, she admits, "I still want to travel." Renting gives her the freedom to do both.

Though growing fast, built-to-rent communities only made up 7.9% of new housing construction last year, according to Arbor Realty Trust. Some housing advocates in Arizona have warned that while these communities help, they won't be enough to lower home prices significantly. Still, many welcome any solution that helps chip away at the ongoing housing crisis.

Read Next:

• This billion-dollar fund has invested in the next big real estate boom, here's how you can join for $10.
• If there was a new fund backed by Jeff Bezos offering a 7-9% target yield with monthly dividends would you invest in it?