Upwards of 300 or more build-to-rent homes may see construction in northern Colorado if all goes according to plans announced by a developer based in Scottsdale, Arizona.
Walton Global Holdings, a real estate asset management company, is plunging big time into the growing build-to-rent market, with a goal of eventually building some 2,500 units nationally.
The Colorado units are slated to go up in the towns of Lochbuie, Loveland, and Berthoud. The projects in all three locations will be part of much larger residential developments.
In a press release, the company said the initial construction is part of a longer-term vision for the company to grow its build-to-rent portfolio, with plans to build additional projects within a “network of more than 180 master planned communities and through new land acquisitions.”
The build-to-rent industry currently comprises around 5% of all homes being built nationally, but, according to Forbes, “It is growing rapidly and highlighting some important emerging trends in housing demand.”
Accordingly, some 60,000 such homes were built last year, with up to 80,000 homes forecast for construction before the end of this year.
The essence of the industry focuses on tenants who want something larger than the typical apartment, while also demanding a certain kind of flooring, counters, built-in appliances and other amenities.
Industry analysts say the market is particularly fueled by married members of the Millennial generation who are just beginning to have children and prefer homes to apartments.
Tenants of such properties also tend to be more durable prospects for developers and investors for the simple reason that they stay in the build-to-rent homes longer than typical apartment dwellers.
By Garry Boulard
