Markets with the Most Build-for-Rent Properties Under Construction
As macroeconomic challenges climb, investor interest in the build-for-rent (BFR) space continues to increase.
Some markets – mostly in the Sun Belt – have emerged as BFR hot spots, with at least 1,000 units under construction in each as of January 2023, according to data from RealPage Market Analytics.
Phoenix easily topped the list with roughly 11,800 homes under construction as of January 2023. Additionally, another 17,200 or so BFR homes are planned in the Phoenix market.
Dallas is another big contender in the BFR market, with over 4,200 homes currently under construction with another 4,600 planned and yet to break ground.
Other notable performers in the BFR space are other Texas markets Houston, San Antonio and Fort Worth, which have emerged as construction hotspots with between 1,400 and 1,700 homes underway.
Two markets in the southeast with more than 1,400 BFR homes under construction include Charlotte and Atlanta. Minneapolis is the only Midwest market on the list, with just over 1,000 homes underway.
When examining the largest BFR properties under construction across the 150 largest apartment markets, roughly 15,100 BFR homes are expected to complete by the end of 2023. Of that number, here are the five largest projects underway, scheduled to wrap up construction by the end of the year. The density of these projects hovers around 300 homes per property.
Bungalows on Sarival in Phoenix
As previously reported, Scottsdale, AZ-based Cavan Cos. is working on the 338-home Bungalows on Sarival. Planned for completion in October 2023, Bungalows on Sarival is located on 30 acres at Bell Road and Sarival Avenue in Surprise, within the Peoria/Sun City/Surprise submarket. The Bungalows product line from Cavan offers residents maintenance-free rental living in single-level floorplans with private backyards. Bungalows on Sarival is the largest of 12 BFR projects (totaling roughly 2,900 homes) Cavan has under construction in Phoenix.
Bungalows on Cotton Lane in Phoenix
Construction on this 336-home property is expected to complete in November 2023. Bungalows on Cotton Lane is located at North Cotton Lane and West Orangewood Avenue within the Avondale/Goodyear/West Glendale submarket just west of Loop 303. Rising within Glendale’s New Frontier District, the new community is near Luke Air Force Base, The Market at Estrella Falls, Westgate Entertainment District and the sports complex that houses the NHL’s Phoenix Coyotes and NFL’s Arizona Cardinals. Scottsdale, AZ-based Cavan Cos. is also the developer for Bungalows at Asante in Phoenix.
Cape Cottage in Myrtle Beach
South Carolina-based Sands Cos. broke ground on Cape Cottage in November 2021. Construction on the 315-home Brunswick County community is expected to complete in December 2023. Cape Cottage is located in Leland, a fast-growing North Carolina town, near Westgate Nature Park within the North Myrtle Beach/Conway submarket. Home sizes range from 510 to 1,293 square feet and will offer residents front porches and pet yards.
TerraLane at Canyon Trails South in Phoenix
TerraLane at Canyon Trails South, within the Avondale/Goodyear/West Glendale submarket, is expected to complete in December 2023. Scottsdale, AZ-based developer TerraLane Communities is building 299 homes as part of this BFR community. TerraLane has more than 1,100 residences across five communities under construction in Greater Phoenix, according to the company’s website. TerraLane at Canyon Trails South is located at 25 North 173rd Avenue in Goodyear. In June, TerraLane Communities sold nearby TerraLane at Canyon Trails for $119.7 million in an off-market transaction.
Bungalows at Asante in Phoenix
Bungalows at Asante, a 293-home community under construction in Surprise is expected to complete in May 2023. The community located at 16630 North Pat Tillman Boulevard sits within the Peoria/Sun City/Surprise submarket. Construction on this Cavan Cos. project kicked off in March 2021. The property will offer one bedroom style duplexes and two- and three-bedroom detached homes with a farmhouse architecture style and fenced yards.