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Assessing market trends and analyzing their profitability for builders and homeowners is the job of expert homebuilding recruiters like the ones at The Newport Group. In the era of rising interest rates, and increasing construction costs, homebuilding executive recruiters have unmasked the potential of build-to-rent homes.

Build-to-rent homes are a practical solution for developers plagued by increasing material costs and would-be homeowners facing an affordability crisis. Residents no longer need to worry about costly down payments while developers can leverage the rising rents.

To further uncover this trend, see what the homebuilding executive recruiters have to add and how you can benefit from it.

Build-To-Rent (BTR) Property Type Offers Positive Demand Outlook

The Covid-19 and Ukraine crisis has disrupted supply chains, and the brunt of this can be especially seen in the US housing and development market. Although the problems already existed before, the situation has exacerbated to the point where even the White House has stepped in to close the supply gap.

However, expert homebuilding executive search consultants would say it’s the ripe time for developers of build-to-rent single-family homes. That’s because – the builder’s low confidence in the new single-family homes market and the first-time buyers’ affordability crisis unite to provide a win-win for all.

If you have no idea how these variables connect to provide an excellent opportunity for builders, executive recruiters, and potential customers, continue ahead. We’ll be elaborating on why an executive search consultant and a developer of build-to-rent single-family homes should work in congruence with each other.

Affordability Amidst Home Price Appreciation

The housing supply gap is powered by the inability of buyers to keep up with rising down payments. The problem becomes severe in the case of millennials who are encumbered with student loans, poor savings, and credit card debts.

Besides, mortgage rates are at a 12-year high while building materials’ costs are up by 19%, as NAHB Chief Economist Robert Dietz reported. So, you can already guess the affordability situation as less than 50% of newly built or old homes look reasonable enough to buy. Therefore, build-to-rent homes are suitable for buyers and builders in such a situation.

These build-to-rent homes provide privacy (unlike multi-family developments), and communities often come jam-packed with amenities without the hassle of upkeep. This is ideal for renters who can’t afford to buy a house but have enough to keep up with the rising rents.

On the other hand, build-to-rent single-family homes benefit developers putting off construction, scared of 0% ROI. It’s because the market for rentals won’t be dying down soon, especially with the economy in such a precarious situation. Moreover, with work-from-home models becoming a norm, most people will be shifting to the suburbs, where the need for such build-to-rent single-family homes will arise.

Accelerating Investment

Developers have long started ramping up construction and investment in build-to-rent homes with debt and equity financing options. The market for single-family rental has been expanding steadily.

According to the Northmarq report on build-to-rent single-family homes and properties, the transaction volumes significantly increased in 2020 compared to 2018 and 2019. Moreover, it was estimated that the sales in 2021 will continue to double in 2022. Even the lenders recognize the raw potential of build-to-rent homes by offering additional capital for their development and acquisition.

So, with developers increasingly becoming aware of drivers, demands, and returns in the build-to-rent single-family homes market, the demand curve seems to be shifting to the right. Therefore, if you’ve recognized the potential of build-to-rent homes by now, then it’s your cue to have the expertise of a executive recruiter. An executive search consultant will have the correct data, know-how, and connections for recruiting the best professionals.

Besides, homebuilding executive recruiters active in the construction and real-estate world should be an ideal choice if you want the seamless development of build-to-rent properties.

Experienced homebuilding search firms like The Newport Group are always one step ahead at unmasking trends that can end the woes of developers and would-be homeowners in the housing market. Executive recruiters will make a significant impact in these trying times.

Build-to-rent property development is one such trend that developers shouldn’t miss out on due to the positive returns it promises. New firms are entering the space as residents find it challenging to own houses amidst rising inflation. In such a case, keeping the expertise and connections of a executive search consultant handy is ideal.

So, in this growing market trend of build-to-rent properties, employing the acumen of experienced executive recruiters is a wise decision.

We Network With A Purpose

The Newport Group is a leading executive recruiting firm with expertise in numerous industry verticals. We deploy proprietary data sets and meticulous processes to identify, recruit, place, and help retain blue-chip talent at leading companies nationwide. Turn the challenges ahead into competitive advantages alongside our help. Roles we’ve placed include Senior VP, VP of Operations, Sr. Construction Manager, and Operations Manager Telecom, to name a few. Our team of recruiters is active in all sectors of real estate development, including production homebuilding, multifamily, affordable, commercial, retail, land, and asset, and property management. Construction verticals include commercial, civil, telecom, gas, power, utility, pipeline, infrastructure, and environmental consulting and remediation. Ever strategic in our approach—we present talent that aligns with our client’s strategic objectives.


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