What to expect at HousingWire’s Spring Summit

The focus of the Summit is The Year-Round Purchase Market. Record low rates led to a banner year for mortgage lenders in 2020, and this year is expected to be just as incredible.

Increasing lending and servicing capacity – regardless of rates

Business process outsourcing and digital transformation are proven solutions that more companies in the mortgage industry are turning to. Download this white paper for more.

HousingWire's 2021 Spring Summit

We’ve gathered four of the top housing economists to speak at our virtual summit, a new event designed for HW+ members that’s focused on The Year-Round Purchase Market.

An Honest Conversation on minority homeownership

In this episode, Lloyd interviews a senior research associate in the Housing Finance Policy Center at the Urban Institute about the history and data behind minority homeownership.

InvestmentsReal Estate

More investors take on build-to-rent housing trend

Slim profit margins on new builds have developers adopting a new strategy

Homebuilders are stepping up to the plate and becoming landlords in the latest growing housing industry trend.

According to CNBC, more and more single-family homes are being built just to be rented out. 

Nearly a decade ago, there was a foreclosure crisis. Realtors were buying old houses and flipping them. Now, the strategy is to buy new and rent out.

This trend allows investors to buy newly built homes and continuously rent them out instead of selling again. This transformed the typical single-family rental into an ever-growing, large-scale class. Homebuilders are now catching onto the trend and building homes for rent, rather than building to sell. The cost of labor on top of the cost of land, materials and other things, make it hard to profit off the sale of a new build. 

So, they turn to renting. Developers are now building entire communities of detached, single-family homes specifically built to rent.

Toll Brothers, a luxury homebuilder, recently announced its commitment to invest $60 million in a $400 million venture that will build homes specifically for rent in seven major U.S. cities.

Lennar, the nation’s largest homebuilder by revenue, experimented with a build-to-rent community in Sparks, Nevada, and announced in July its plans to move further into the space.

Clayton Homes, the 15th largest site-builder and home manufacturer, also recently revealed its build-for-rent home communities, to be built within its market.

These homebuilders are targeting younger families who seek the more flexible method of renting homes rather than purchasing.

In January, Professional Builder Magazine said that it’s a trend, projected to continue as consumers struggle with higher interest rates, higher home prices, and a limited supply of homes for sale. Or, simply prefer to rent.

Most Popular Articles

Do higher mortgage rates mark the end of the refi wave?

As mortgage rates rose over the last week, refi activity fell. But millions of borrowers are still eligible if lenders can get them through the pipeline.

Feb 23, 2021 By

Latest Articles

How lenders can prepare for growing fraud threats

HousingWire recently spoke with Jeffrey Morelli, general manager at Truework, about what lenders can do to prepare for and overcome the growing threat of fraud and data inaccuracy.

Feb 26, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please