Connect Texas Multifamily 2022 Panel Touts Build-For-Rent Trend

Industry leaders who participated in the recent Connect Texas Multifamily 2022 Built-For-Rent (BFR) panel discussion were extremely bullish on the prospects of the relatively new housing phenomenon, both in terms of ease of filling up the units and financing the projects. Panelists included Tony Ruggieri of Record Street Residential, Richard Whatcott of Camden Living and Greg Smith, from Berkadia’s Dallas office, who said that… “the market for BFR rentals is 10% and may go as high as 25%. This is just the beginning of the wave.”

Delineating the reasons tenants are giving as to why they chose BFR over traditional apartment communities, panelists volunteered…”Tastes are changing…many Americans are tired of living in an apartment box…rents are the same as a Class A apartment…housing affordability is not what it used to be…fewer Americans can qualify for a home loan, but they can afford to rent a comparable BFR unit…a number of Americans are looking for the same experience as home ownership, without having to part with a 20% down payment.”

The panelists all agreed on three BFR benefits: a front and back yard or patio, more flexibility than having a mortgage, and privacy versus the traditional garden-style apartment community.

As far as developers financing BFR communities, most agreed that it was no more challenging than a standard multifamily apartment community. Some thought it might even be easier. Panelists admitted developers have to keep going out farther from metro areas to find developable land, but the distance from the urban core has yet to slow the enthusiasm for BFR communities.