Affordable housing is a critical issue facing many communities in the Mid-Atlantic and Midwest regions of the United States. Affordable housing can also be broadened in general to affordable-luxury and attainable housing too. The lack of housing options can have severe consequences for families and individuals struggling to find a safe and stable place to call home. In turn, the lack of options also have a detrimental impact on what I call “retainage” of a community – that’s the ability for the community to retain and support its workforce in its own community.

That’s where investing in build-to-rent communities can make a positive impact by helping to close the affordable housing gap and help communities and cities retain more of their residents. By bridging this gap, investors can not only achieve long-term financial returns but also contribute to the social and economic well-being of these communities.

The Mid-Atlantic and Midwest regions have experienced significant population growth over the past few decades, resulting in a shortage of rental housing options. The shortage has been exacerbated by rising housing costs, slower growing wages, and now interest rates, making it increasingly difficult for many families to afford the space they require to live. Most, if not all, apartment style buildings are not viable for a three-person family.

Investing in build-to-rent communities can help address the affordable housing crisis by providing quality, affordable housing options for families and individuals. Build-to-rent communities are designed to offer a sense of community and stability that is often missing in traditional rental housing. They provide amenities such as on-site management, maintenance, and security, as well as shared spaces like community rooms and outdoor areas.

One of the primary benefits of investing in build-to-rent communities is the long-term financial returns that they can generate. These communities offer stable, predictable income streams, just like multifamily investing, that are less susceptible to fluctuations in the real estate market than other types of investments. Build-to-rent communities also tend to have lower vacancy rates, which can provide investors with a steady cash flow and protect them from market downturns. Turnover is also lower and in many lease-up scenarios, we push two-year initial leases to guarantee more stable revenue.

In addition to the investing returns from the multifamily, build-to-rent space, there are a lot of documented social and economic impacts. Sure, providing quality, affordable housing options, can help families and individuals achieve greater stability and security, but there is a higher degree of neighborly community and with more amenities, less maintenance, and professional management, individuals and families can get back more time to themselves if they prefer to travel for leisure or to visit family. Better monthly rental rates when compared to owning a home can also allow would-be residents the chance to save for their first home. When pricing rental rates, we ask ourselves: “If someone was to rent with us versus buy at this time, how many months would it take for them to save for their first or next home?”

Another benefit of investing in build-to-rent communities is the opportunity to participate in the development of sustainable, environmentally conscious communities. Most of our communities project building with 50% of construction costs that can be energy efficient materials. Build-to-rent communities can be designed with sustainability in mind, more green spaces, with features such as energy-efficient appliances, and premium doors and windows to help save on energy. By investing in these types of communities, investors can contribute to the creation of more sustainable and resilient communities that are better equipped to withstand the challenges of climate change.

Learn how you can invest in our next build-to-rent community in the Mid-Atlantic and Midwest regions of the United States. By providing quality, affordable housing options for families and individuals, investors can not only achieve long-term financial returns but also contribute to the social and economic well-being of these communities. With the demand for affordable housing continuing to grow, investing in build-to-rent communities can be a smart and socially responsible investment choice for accredited investors, high-net-worth individuals and institutional investors alike.