Build to rent housing inventory is growing fast, and following the influx of investors buying millions of distressed homes and turning some of them into rentals after the foreclosure crisis, single-family rentals have turned into a big business. In this Video Spotlight, Gerald Ellenburg, CEO of ERC Homebuilders, spoke with CNBC [1] about the growing market for rental investments.
Many big businesses are cashing in on the built-for-rent [2] investment market. Toll Brothers recently announced a $60 million investment in a joint venture with BB Living, a build-to-rent company based in Phoenix.
“There is a consumer rental demand that is driving these institutions to want much greater levels of inventory of this product,” said Ellenburg. “They are learning or have learned that new inventory is a much safer and more official rental product.”
“It’s viewed as an ancillary income stream. We see this as more and more renters may prefer to raise a family or live in a single-family home versus an apartment complex or community or building. And so it is part of our Apartment Living group,” Toll Brothers CEO Douglas Yearley said on the company’s second quarter earnings conference call last month.