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In its aftermath, the American housing bubble left millions of discarded single-family homes. Slowly but surely, these homes have come off the market in the past few years. Some were bought, and countless others were purchased by investors and put out to rent. Currently, the number of homes for sale in the United States is dwindling considerably, and developers have turned to creating entire neighborhoods of single-family homes not to sell, but to rent.
According to Irvine’s own John Burns Real Estate Consulting, approximately 25,000 detached homes were built for rent last year; a figure the consulting firm expects will increase substantially in the coming years. The creation of this new single-family home rental sector begs the question: Is this good, or bad?
The appeal of renting a new home is extensive, in no small part due to the diminished price tag. Families who are not able to purchase a new house will now be able to afford the new home experience. However, one aspect to consider is that these families will not own these new homes, and an undeniable truth is that people take better care of something when they own it outright.
If the single-family rental sector thrives, there will be hundreds of thousands and maybe millions of new rental homes throughout the country. How well will these homes be maintained? How will this new rental market affect the housing industry and economy? The only certainty is that its effect, whether positive or negative, will be felt with formidable force in the United States.
We want to hear your opinion on these new single-family rental developments. Do you think they will be helpful or detrimental to our country and industry? Do they excite or worry you? Email your thoughts to media@www.nawrb.com or post them below!