Building to rent From the cover
The details
Two-minute impact
The rise of the average home price and the asso- ciated rise in interest rates “very much” relates to the rise in demand for build-to-rent housing, Ireland said. Although the price of owning a home has risen, the average household wages have not. This means people who want homes but can’t afford them can still enjoy the benefits of owning a home without having to be tied down to long and expensive mortgages, said Kyle Jefferson, a real estate agent for Living the Dream Realty Group. “Obviously, I’m a Realtor. I want to sell [houses],” Jefferson said. “But [build-to-rent] does meet a need.” According to the Houston Association of Realtors’ Q2 2024 Housing and Rental Affordability Report, mortgages are higher than leases.
rise in build-to-rent communities. When planning these communities, Ireland said developers take into account different factors, including the number of jobs nearby, how long commutes to those jobs will be and if there are nearby school systems. “I think we’re learning that each development has its own market, and what … [renters are] looking for is not necessarily the same from one community as it is in another,” Ireland said.
Houston-area developer The Signorelli Company is developing 129 build-to-rent units in its master-planned community Cielo in Conroe, with an anticipated completion date of late 2025. Ralph Ireland, senior vice president of real estate and development for Signorelli, said the home rental industry has evolved from companies buying homes from owners; to dealing with homebuilders; to now seeing a
Build-to-rent communities in the Conroe area
Existing
Planned
1 Village at Granger Pines • 120 units 2 Lakeside Conroe • 340 units 3 Cottages at Buckshot Landing • 129 units
4 LEO at West Fork • 197 units 5 The Village at Caney Mills • 178 units 6 Amber Pines at Fosters Ridge • 124 units
7 Bright Morningstar Place • 98 units 8 Edge at Montgomery Park • 113 units 9 Cielo • 129 units 10 The Everstead at Conroe • 190 units
Housing vs. lease payments
Monthly housing payment*
Median monthly lease price*
1484
2
75
105
9
10
5
LONGMIRE RD.
WILLIS WAUKEGAN RD.
8
7
105
149
2854
4
336
FISH CREEK THOROUGHFARE
3083
6
1
3
Harris County
Montgomery County
Conroe Magnolia area
1488
45
MAP NOT TO SCALE N
SOURCE: HOUSTON ASSOCIATION OF REALTORS/COMMUNITY IMPACT *AS OF THE SECOND QUARTER OF 2024
SOURCES: HOUSTON ASSOCIATION OF REALTORS, RESPECTIVE BUILD-TO-RENT COMMUNITIES, THE SIGNORELLI COMPANY, WAN BRIDGE/COMMUNITY IMPACT
What they’re saying
“What we’re seeing is that renters of the homes actually have even more of an ownership mentality.” RALPH IRELAND, SENIOR VICE PRESIDENT OF
“We have increased the amount of builders we have so that we’re able to keep up with the demand.” ANNA BROUSSARD, HOUSTON SENIOR REGIONAL MANAGER, WAN BRIDGE
“I think that the driver behind [build-to-rent] is the institutional investor looking for di erent
ways to invest in the real estate market. … This is ... like a new frontier.” KYLE JEFFERSON, REAL ESTATE AGENT, LIVING THE DREAM REALTY GROUP
COMMERCIAL REAL ESTATE AND DEVELOPMENT, THE SIGNORELLI COMPANY
22
COMMUNITYIMPACT.COM
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