A Phoenix-based builder of rental homes is increasing its investment in the Austin area to $164 million with its latest land purchase.
It fits into a trend of built-to-rent neighborhoods popping up across the Austin metro. Proponents argue they add to the types of housing available as the region grapples with a shortage of places to live, and that they can provide greater flexibility for those who want the comforts of a single-family home but not the commitment of a mortgage.
NexMetro is credited with being a pioneer in the current build-to-rent trend and as of 2020 had invested $1 billion across four states,According to a January RentCafe report, 2021 was a record year for single-family rental home construction, with 6,740 built-to-rent homes completed nationwide. The same report predicted 13,910 completions for 2022. Austin ranked No. 13 among U.S. metros with 1,390 total rental homes.
"As interest rates inch upward, more potential homebuyers have lost purchasing power, which makes this best of both worlds option even more appealing," Flory stated.