Due to the COVID-19 pandemic, a growing number of individuals and families who have struggled with social distancing in large apartment buildings are opting for more indoor and outdoor space in the suburbs. Instead of taking on a mortgage and expenses of owning a property, many are looking to rent. Developers are seeing a need for the build-to-rent model and pouring billions of dollars into it.
Despite the low interest rates, first-time homebuyers are also finding it difficult to close on properties due to recent job losses and economic uncertainty. “Banks are being careful about underwriting loans to homebuyers, despite low rates,” said Joe. “It’s just an unprecedented time where a lot of these factors are coming together to make [build-for-rent] attractive.”
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