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Builders Look to Growing Home Rental Market
Chris Arnold reports on new subdivisons that are made up of homes that are not for sale, just for rent. "[Developer Josh Hartmann] says there are basically three types of renters of these houses: recent divorcees like [Lou Ann] Erwin, aging baby boomers who don't want the headaches of owning a house anymore and millennials."
Hartmann says he started building homes after the housing crash as an alternative for people who lost homes to foreclosure and wanted time to recover financially before looking at home ownership again. Instead, he found that more people with the resources to purchase homes were choosing to rent instead.
The renters say they prefer the home and neighborhood amenities these rentals offer, including yards, patios, and community pools. In areas with rising housing prices, such as Denver, the rentals also offer an option for people reluctant to commit to long-term mortgages, notes Arnold. "In the past year, developers around the country built more than 40,000 homes as single-family rentals, the National Association of Home Builders says."