Build to Rent

In many US markets, including here in California, builders are busy constructing new apartment communities and foregoing “for sale” condos. For instance, in downtown San Diego there are only 2 “for sale” condo projects being proposed compared to 38 apartment projects.  Despite this paucity of new “for sale” home growth there is a new asset class, a new trend of builders building single family homes to rent and not to sell.  This new trend is called B2R and it’s turning the American Dream of homeownership on its head.  Even big builders such as Lennar and Toll Brothers are building entire new “single-family” home communities – to rent them out.  This trend will certainly affect the HOA industry as there will be fewer communities to manage. If you are interested in reading more about this trend, read more here.