Arizona remains at the forefront of a booming build-to-rent market that is just beginning to be duplicated across the country.
Several weeks ago, the Palm Desert, California-based company Family Development announced plans to build two upper end build-to-rent communities. The Villas Litchfield Park project, 19 miles to the west of Phoenix, is slated to see the construction of 153 residential units, while the Villas Goodyear project will feature 151 homes.
The UrbanStreet Group of Schaumburg, Illinois, has just purchased nearly 17 acres of land in Goodyear, Arizona for $14.5 million. That land comes with earlier approved plans to put up a build-to-rent community of just over 300 homes.
NexMetro Communities of Phoenix, the industry leader for this kind of construction, as of late last year had around two dozen build-to-rent communities either already completed or in the process of being built.
According to the National Association of Home Builders, around 68,000 such homes were completed between the fall of 2021 and September 2022. While that’s a drop in the bucket compared to the nearly 2 million standard homes that are built nationally every year, it nevertheless represents a 68% increase since the covid year of 2020.
And those build-to-rent homes can be everything from townhomes to bungalows to high-density detached.
Notes U.S. News & World Report: “With so many projects in the pipeline, even more communities are expected to pop up between now and 2030.”
This week the New York-based equity firm GTIS Partners announced the launching of Tavalo, described in a press release as a “dedicated build-to-rent community development company.”
With work underway on seven built-to-rent communities located in both metro Phoenix and south Florida, GTIS and Tavola, continued the release, “we will have developed approximately 2,100 build-to-rent units.”
By Garry Boulard
