Built-to-rent homes skyrocketing
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Built-to-rent homes are exploding in Salt Lake City, with 2023 reaching a 10-year high in new construction — in contrast with the tight market for buyers.
The intrigue: Even more of the homes are coming, with more than 1,100 units under construction in Salt Lake as of mid-April — more than double the total built last year, according to data from RentCafe.
Why it matters: With mortgage rates perched near record highs for the year, there has been a proliferation of built-to-rent communities, which offer amenities, property management perks — and no mortgages.
By the numbers: With 377 units completed in 2023, the Salt Lake metro area had the 19th-highest number in the country, above much bigger cities like Denver, Detroit and even Chicago.
- The Provo-Orem metro added another 192.
The big picture: Such developments are typically popular in the Southeast, Southwest and Sunbelt, where land costs less.
- But they've been slowly moving into other parts of the country.
Between the lines: Built-to-rent communities are particularly appealing to those who want more space but can't afford to buy a house, and empty nesters seeking less home upkeep, experts say.
Zoom out: The number of built-to-rent community houses completed nationwide jumped 75% from 2022 to 2023, reaching an all-time high of nearly 27,500 homes, according to a recent RentCafe report.
- Over 45,400 more are now under construction, per the analysis.