Not everyone wants an apartment, but not everyone wants to buy a house either. That’s where “build-to-rent” homes have become popular. These are brand-new single-family houses designed specifically for renters. For the privacy of your own house without the burden of a mortgage or maintenance. About 7% of new single-family homes hitting the market today are built for rent, not sale and that number has grown more than ten times over the past decade.

Companies like NexMetro are leading this trend, especially in Sun Belt states like Arizona where populations are booming and land is available. When NexMetro’s CEO started building these homes back in 2009, he expected his renters to be people who had lost their homes in financial crisis or even today with so many devastating storms or fires. Instead, he found his biggest customers were young professionals who simply weren’t ready to buy, people who wanted the space and privacy of a house but preferred the flexibility of renting while they figured out their lives.

This trend reflects a bigger shift in how Americans think about homeownership. For younger generations especially, buying a home no longer feels like the automatic next step it once did. Especially with the cost of living and college costs leaving graduates with large debt. Whether it’s the financial pressure of sky-high prices, the desire to stay flexible, or just a different set of priorities, more people are choosing to rent houses rather than own them and an entire industry is now being built around that choice.

Until next time,

Lila Kaplan