The build-to-rent business is attracting investor attention, according to CNBC. And some big home-building players are getting into the act.
The build-to-rent business is growing fast, with several companies, including big names, dipping into it. Toll Brothersrecently announced a $60 million investment in a joint venture with BB Living, a build-to-rent company based in Phoenix.
“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.
Lennar, the nation’s largest homebuilder by revenue, experimented with a build-to-rent community in Sparks, Nevada, and announced this week it is moving further into the space.
“We recently entered an agreement with one of our long-standing third-party relationships to build homes that will be purchased by that third-party in a stand-alone rental community,” Lennar President Rick Beckwitt said on the company’s earnings call. “This community is in Florida and is the first in what we believe will be an ongoing business strategy and relationship where we build and sell homes in bulk on land owned by third parties with no lease-up risk.”
