According to a recent article in Housing Wire, due to soaring home prices, many investors and builders are building to rent. The rise in existing home prices is not making it profitable to fix up and flip properties or rent them. Building to rent is becoming a growing trend and a shift to this trend became apparent in 2016.
According to the article, some builders are leaving the sales market and concentrating on building rentals only. This is fueled by investor demand for newer properties. Brand new rentals are more desirable to investors as well as renters. This is because they can charge higher rents and their insurance and maintenance costs are lower with a new home. The article also cites that renters of brand-new homes tend to rent for longer periods of time. Rental rates are already high on older homes, so there is a minimal differential between rent rates.
This is not good news for renters who comprise about 40 percent of the housing market in many areas, and who are struggling to earn enough to afford rents or trying to save to buy a home. For investors, however, it presents some great opportunities to adapt to the shifting market from the days when foreclosures were bought and fixed up and turned into rentals.
515 S.E. Woodland Blvd., Bend, OR 97702
2 beds, 1 bath, 1,178 square feet, .11 acre lot
Built in 1930
Listed by Hasson Company Realtors
3 beds, 2 baths, 1,917 square feet, .14 acre lot
Built in 2008
Listed by RE/MAX Key Properties
676 N.W. Powell Butte Loop, Bend, OR 97703
4 beds, 3.5 baths, 3,860 square feet, .32 acre lot
Built in 2003
Listed by Stellar Realty Northwest
Photos and listing info from Central Oregon Multiple Listing Service