By Angela Gonzales | Phoenix Business Journal
Metro Phoenix currently has 3,252 single-family homes available for sale and a total of 2,365 single-family homes for rent for a total of 5,617 units available, said Keith Burton, Realtor with The Rider Elite Team in Scottsdale.
“This converts to 42% of homes available for rent,” he said.
There are an estimated 1.5 million renters in Maricopa County, Burton said.
“Of that, an estimated 497,000 of those renting had a 640 credit or better,” he said. “This is a huge number when looking at how many people are waiting for homes to be built or come available on the market.”
Last month, Invitation Homes committed to providing $250 million of equity capital to launch Pathway Homes, a new real estate company to help renters purchase a home.
“We believe 25% of our customers in our core business leave every year to home ownership,” Dallas Tanner, co-founder and CEO of Invitation Homes said. “There are ways to own a home outside the traditional sense of how you purchase. We’re getting smarter at what residents want. The answer is around flexibility and choice.”
This initiative follows a deal forged last summer where Invitation Homes and Atlanta-based PulteGroup Inc. agreed to build more than 7,500 single-family rental homes in certain markets over the next five years.
“Some will likely be in Phoenix,” Tanner said.
Metro Phoenix is ground zero for the wildly popular build-to-rent market.
With 6,420 existing build-to-rent homes, metro Phoenix leads the nation in the development of this hybrid model that features single-family detached homes built within communities with resort-like amenities, according to RentCafe.
Nationwide, 6,740 build-to-rent homes were built in 2021, the highest yearly total to date, with another 14,000 under construction set to deliver this year, according to the RentCafe study.
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Related: Single-Family Rental Rates Here are Twice the National Average