PHOENIX — More homes were built to lease in Phoenix than anywhere else in the United States.
According to a report from Northmarq, Phoenix saw nearly 6,000 of these homes constructed in 2022, beating out Dallas, Houston, Orlando, and Atlanta.
Experts like ASU’s Mark Stapp aren’t surprised.
“Not at all. The product type started here in Arizona. It was perfected here in Arizona, and it grew from Arizona,” he said.
Stapp said build-to-rent properties gained popularity after the Great Recession. The thinking was that offering homes to rent would be attractive to people who may have damaged credit from the housing crisis.
Currently, they offer an alternative. They can offer the feel and space of a house without a long-term commitment. However, according to Northmarq, they usually rent for $600 more a month than the average apartment.
“These are tradeoffs to people,” Stapp said. "There is a lot going on in this market, and a lot going on in people’s lives that affect those decisions."
There is some concern that the build-to-rent market could be hurting the supply of the traditional housing market. However, Stapp does not believe they are direct competitors, and the build-to-rent segment of the housing market offers a valuable middle ground.
“That’s what we want," Stapp added. "We want a diverse marketplace with lots of options so people can make choices."
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