Housing Market Shift Leads To Boom In Build-To-Rent Homes

High-interest rates, coupled with a 40% jump in housing prices, have made it cheaper in 2023 to rent than buy a new home.

Buying a home has long been considered part of the "American Dream," but a shift in the housing market as a result of the pandemic is changing that.

Keri Cooper is the executive director of the Tulsa Apartment Association, which serves the rental housing industry of northeastern Oklahoma.

"The way that our society is looking at home ownership is different, and people are really taking a look at renting as a viable option for their lifestyle," she said.

Developers are taking notice and building communities of brand-new single-family homes.

Under construction in Bixby is Legacy Farms. The homes range from 1, 2, 3, and 4 bedrooms with fenced-in yards and a garage.

Chip Ashby is the owner of Acre Development, which is the company behind the project.

"These will be so nice compared to what you are seeing specifically in Bixby," he continued saying, "If you go online and look at the other comps we would be comparable to, you have new finishes, you have granite countertops, you have a great pool, great gym, the list is pretty long."

Ashby said these build-to-rent homes meet a need for those who want the flexibility of the renter and the privacy offered by living in a house.

"As you mature and get older, you start having families, or now you are an empty nester, and you do not want to share the same four walls with someone, or you just want a little more room and have that traditional sense of having your own home. That is the tenant we are looking for," he said.

12 miles away in Broken Arrow is Twill Centennial Crossing, another build-to-rent community that is about a year old. Tulsa Property Group is the developer behind this project, and it offers 1-, 2-, or 3-bedroom homes with several key amenities included.

"We do have the on-site pool, the hot tub, the dog park, but even a step above that, we have our on-site maintenance, which is really huge for people, and we are a gated community," said Bonnie Hayes, the regional supervisor. "So, I think having all that just gives us that one little edge above," she said.

Cooper said looking at the current housing market trends, it is more affordable to rent than buy.

"The interest rates are high, and so they are choosing to wait until another time to go ahead and make that purchase," she added.

However, buying a home still has the edge when it comes to the investment aspect. Buyers can build equity in their homes and eventually pay it off.

For some, that is just simply not an option at the moment, and Cooper said owning a home is not the end-all-be-all to investing.

"It is, I think, being discussed more is as a home is that truly a great investment, or could you take that money and invest it in other ways and grow your money the same way you would with a home, but still give you the flexibility," she said.

Legacy Farms is expected to be complete in March or April 2024. To learn more, visit their website here.

Twill Centennial Crossing is about 90% occupied, but Tulsa Property Group is opening another community soon in Owasso called Twill Bailey Creek. For more information, click here.