Julie Schmit explores what the "unprecedented" growth in the single-family home rental market means for home builders, school districts, and the consumer economy.
With "three of four homeowners who lose homes to foreclosure or other mortgage distress" flocking to single-family home rentals across the country, investor capital is following them to the tune of "tens of billions, if not hundreds of billions, of dollars of private equity" in the next five to ten years.
As investors snap up homes in neighborhoods hit hard by foreclosure, the character of those neighborhoods is evolving along with the change in ownership. Using the example of a neighborhood in Phoenix known as The Arbors, in which 38% of the 484 homes appear to be rentals, Schmit notes that "the combination of rentals and declining home values have taken a toll" on the area's appearance, according to homeowners. As a result of the perceived harmful effects of rentals on community maintenance and neighboring home values, some cities, and even some home builders, have taken steps to limit the spread of rentals.
"The move toward a 'rentership society' is bad for home builders, says a report from Morgan Stanley, but it's good for home furnishing retailers," writes Schmit. "People buy furnishings when they move, whether they rent or buy, the report says." Furthermore, companies providing services as diverse as financial-services, storage, and insurance stand to benefit from money saved by those paying rent rather than mortgages.
FULL STORY: Home rentals — the new American Dream?

Planetizen Federal Action Tracker
A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

Restaurant Patios Were a Pandemic Win — Why Were They so Hard to Keep?
Social distancing requirements and changes in travel patterns prompted cities to pilot new uses for street and sidewalk space. Then it got complicated.

Map: Where Senate Republicans Want to Sell Your Public Lands
For public land advocates, the Senate Republicans’ proposal to sell millions of acres of public land in the West is “the biggest fight of their careers.”

Maui's Vacation Rental Debate Turns Ugly
Verbal attacks, misinformation campaigns and fistfights plague a high-stakes debate to convert thousands of vacation rentals into long-term housing.

San Francisco Suspends Traffic Calming Amidst Record Deaths
Citing “a challenging fiscal landscape,” the city will cease the program on the heels of 42 traffic deaths, including 24 pedestrians.

California Homeless Arrests, Citations Spike After Ruling
An investigation reveals that anti-homeless actions increased up to 500% after Grants Pass v. Johnson — even in cities claiming no policy change.
Urban Design for Planners 1: Software Tools
This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.
Planning for Universal Design
Learn the tools for implementing Universal Design in planning regulations.
Heyer Gruel & Associates PA
JM Goldson LLC
Custer County Colorado
City of Camden Redevelopment Agency
City of Astoria
Transportation Research & Education Center (TREC) at Portland State University
Camden Redevelopment Agency
City of Claremont
Municipality of Princeton (NJ)