Industry insights, market outlook reports and commercial real estate
news, and trends from the Coldwell Banker Commercial brand.
Retailers in the United States are defying historic lows in retail space availability by planning to launch 1,000 new stores this year, underscoring the sector's resilience amid commercial real estate challenges. Despite factors like inflation, elevated interest rates, and the closure of businesses such as Bed Bath & Beyond and Christmas Tree Shops, landlords are reporting unwavering demand for retail spaces, highlighted by The Wall Street Journal. This resilience can be attributed to the reduced retail construction since the 2008-09 financial crisis, allowing the oversaturated sector to absorb its existing real estate. Moreover, retailers are using online sales data and analytics to pinpoint ideal locations for successful stores. Contrary to predictions of online retail dominance, digital-native companies are now establishing physical storefronts after reaching their online customer acquisition limits. Shoppers are returning to stores and restaurants as pandemic restrictions ease, alleviating earlier concerns. Additionally, Commerce Department data from earlier this summer reveals that retail sales increased by a seasonally adjusted 0.7% in July compared to the prior month. American spending has risen for four consecutive months and seems to be outpacing inflation.This retail revival stands in stark contrast to the office market, which is grappling with a 30-year high in office vacancy rates of 18.2%, primarily due to the rise of hybrid work schedules. A whitepaper by Placer.ai highlights the success of Walmart, Target, and Costco amid economic challenges such as inflation and high gas prices. Despite the evolving retail landscape, these retailers serve as prime examples of how challenges can transform into opportunities. Placer.ai's Q2 2023 data suggests that shifting consumer trends are favoring superstores.In fact, both Costco and Target outperformed the broader retail sector in year-over-year (YoY) performance, with visit growth rates of 1.2% and 3.1% in the first half of 2023, compared to the overall retail sector's 0.3% decline. Conversely, Walmart seemed to be more affected by inflation, possibly due to its visitors having a lower median household income compared to Costco and Target shoppers, experiencing a 0.9% decrease in foot traffic compared to H1 2022. However, recent weekly visit data indicates a potential Walmart rebound. Between June 19th and July 24th, the chain recorded year-over-year weekly visit growth, suggesting a positive trajectory and hinting at year-over-year growth in the second half of the year.For commercial real estate investors, staying attuned to retail trends is of paramount importance. The ability to anticipate and respond to these trends can make the difference between a successful investment and a poor decision. Understanding which retailers are thriving and why, as well as grasping the nuances of changing consumer behavior, can inform strategic decisions regarding property acquisitions, leases, and developments. Incorporating these insights into investment strategies can help commercial real estate investors identify prime locations, optimize property portfolios, and ultimately maximize returns on their investments.
The U.S. is facing a potential loss of nearly 200,000 affordable housing units in the next five years as government protections expire for hundreds of rental properties, allowing landlords to set their own rents, highlighted by The Wall Street Journal. The main program used by the federal government to encourage developers to build affordable housing is a 30-year tax credit. However, specific agreements that assisted low-income renters are set to end, giving landlords the option to charge market rates for their units instead of continuing with the government program. Due to a period of high rent growth, many landlords are expected to raise rents significantly. Between early 2021 and the summer of 2022, asking rents for market-rate units increased by 25%, according to Apartment List, a rentals website. By 2027, up to 188,000 low-cost rental apartments funded by the government tax credit could convert to market rate, as reported by Moody's Analytics. Certain cities, such as Dallas, Chicago, and Houston, are at risk of losing a significant portion of their affordable housing. During the pandemic, a considerable number of affordable housing units vanished, with a decline of 400,000 apartments and rental homes for families in poverty between 2019 and 2021, according to the National Low Income Housing Coalition, which analyzed U.S. census data. Some of this loss was attributed to the expiration of tax credits, as mentioned by Moody's Analytics.Without longer affordability agreements or new subsidies, approximately 100,000 units of tax-credit housing could expire annually by 2033, according to Peter Lawrence, director of public policy and government. Rent increases following expiration can be substantial, as affordable housing rents are typically 38% below market rates on average, but after expiration, they rise to about the same level as market-rate properties of comparable quality and location, according to a study by Freddie Mac.This situation has left some long-term renters in difficult situations. The Wall Street Journal article shares the story of an 85-year-old renter in California who lives on a monthly income of $1,000 and has experienced minimal rent increases for nearly three decades. However, in 2021, the landlord opted out of the federal tax credit program, causing the rent to more than double, going up to as much as $1,300. Landlords have been major supporters of the tax credit program, and many have built large businesses by operating affordable housing. But without new subsidies or incentives, building owners will likely take advantage of the recent hot market and raise rents to meet the rising costs of maintenance, insurance, and property taxes. The solutions to this looming challenge will require cities and government agencies to work with landlords and developers to encourage investment into affordable housing projects, while simultaneously creating the incentives to do so. It is a complex situation that won’t easily be solved but without collaboration to address the need, it is clear that fewer options will be available. That doesn’t bode well for the future of many who are in desperate need and could end up without a safe and secure place to live.
Numerous office buildings remain largely vacant. The once rapid growth of apartment rent has decelerated and is even declining in certain areas. However, within the struggling commercial real estate industry, there is a rare positive aspect seen in housing aimed at college students attending popular universities.The rental rates for student housing are anticipated to increase due to limited availability and substantial demand at various colleges, particularly those prestigious research universities and schools affiliated with the top five highest-earning athletic conferences in U.S. college football. Nonetheless, as overall college enrollment experiences a decline, there are heightened risks for student housing, particularly in smaller colleges with less renown and diminishing enrollment, as highlighted by The Wall Street Journal.Despite the increase in mortgage rates over the past year, sales of student housing properties reached an all-time high of $22.9 billion in 2022. In contrast, the growth in multifamily rents is showing signs of cooling down from the double-digit surges observed in the previous year, with an increase of 2.3% over the 12 months ending in May 2023, as reported by RealPage. Meanwhile, student housing rents are experiencing growth at a rate of approximately 9%, according to RealPage.The COVID-19 pandemic served as a unique test for the resilience of student housing in challenging markets. Despite expectations of a downturn in 2020, occupancy rates remained stable, even during the peak of online learning. Students displayed a desire to move closer to their college campuses, even when attending classes virtually, instead of staying with their parents. The uncertainty surrounding the return to on-campus learning had a dampening effect on rental rates until the latter half of 2021, at which point they began to rise again. The combination of bustling campuses and increasing rental rates contributed to the record sales observed last year.It is predicted that sales of student housing properties this year will likely not reach the levels seen in 2022, partly due to the pent-up demand that drove sales in the previous year. While the values of student housing properties, like other commercial real estate types, have been affected by higher borrowing costs, the decline in value has been comparatively moderate. This is attributed to the robust growth in rent and sustained occupancy rates. Industry experts, including Blackstone, have expressed confidence in the enduring strength of this sector, stating that it has proven resilient over time and is likely to remain a positive prospect in the future. Blackstone backed this up by acquiring American Campus Communities for $12.8 billion. While the market is challenging right now, it’s interesting to note the steadiness and success of student housing despite the market’s current volatility. Additionally, supply constraints resulting from a lack of available sites at certain schools will further empower landlords to continue raising rental rates.
With soaring home prices and the peak rental season in full swing, renting has emerged as the contemporary alternative to buying. However, among the cities experiencing heightened listing activity, which ones are drawing the greatest attention from apartment seekers? According to research by RentCafe, Arlington, VA, retained its position as the most coveted city among renters for the month of August, maintaining its dominance from the previous month. Climbing three places from its July ranking of No. 5, Kansas City, MO, secures second spot. Minneapolis and Cincinnati, both situated in the Midwest, secure the third and fourth positions, respectively. Meanwhile, Denver secures the fifth position, marking a significant jump of six places since the previous month. The apartment listings in these cities garnered the highest engagement on RentCafe.com this month. This heightened engagement can be attributed to a combination of factors, including a substantial number of rental properties being saved to favorites, personalized search activity, limited unit availability, and a notably high volume of listing views overall.The Midwest significantly asserts its influence by securing ten out of the top 30 cities with the highest rental activity in August. A significant number of individuals are gravitating toward the Midwest, attracted by its affordable cost of living, expansive open spaces, and relaxed pace of life. The region is known for its friendly residents, economical land prices, and a tranquil lifestyle distinct from other parts of the United States, which has enticed a range of people to trade life on either Coast for the Midwest. The South follows closely with nine cities on the list. Concurrently, as the peak rental season unfolds, renters are shifting their apartment search focus towards suburban localities that provide convenient access to urban amenities. This shift has propelled Phoenix suburbs—Chandler, Gilbert, and Peoria—into the ranking as the freshest and most sought-after rental locations. Consequently, this month showcases the inclusion of seven Western cities in the roster of the nation's most desired renting destinations.However, the appeal of core urban living remains strong. In a remarkable advancement, New York City's Bronx ascends three places to occupy the No. 6 spot, edging ever closer to the top. Not to be overshadowed, Queens, the largest borough of NYC, follows suit, securing the No. 13 position this month—an impressive climb of six places from the prior month. Similarly, Philadelphia, Chicago, and Houston continue their sustained presence among the nation's premier cities for rental activity.Staying informed about the cities in the highest demand for renters is a crucial undertaking for investors. This knowledge empowers investors to make well-informed decisions that align with current market trends and capitalize on lucrative opportunities.
The primary contributor to the increasing cost of living for Americans are expenses associated with rent and mortgages, making it important to consider which cities offer the powerful combination of affordability and quality of life in 2023. It’s important to factor in a city’s apartment quality; local economy; employment opportunities, living expenses, traffic; schools, air quality, and natural amenities when making the difficult decision to plant roots in a new place. New data by RentCafe highlights where people living in the U.S. can get the most out of their renting experience in 2023. According to RentCafe, Southern states are the premier region for renters, claiming an impressive 36 out of the top 50 spots. This includes renowned rental hotspots like Miami and Orlando, FL, as well as lesser-known markets such as Plano, TX; Asheville, NC; and Birmingham, AL. Renters in this region have the luxury of choosing between the vibrant ambiance of a major city or the enchantment of a charming small town. Charleston, SC takes the No. 1 spot for Best Places to Live in 2023Charleston, South Carolina, the largest and oldest city in the state, secures the top spot in this year's ranking of the best cities for renters. This accolade is attributed to its optimal combination of apartment quality and cost of living, which ranks as the third-best in the country. Additionally, Charleston earns a commendable score in the local economy category. Notably, the city has gained recognition as a burgeoning tech hub with over 250 tech companies, positioning it fifth in terms of the local economy.Renters in Charleston can enjoy a suburban feel that offers the advantages of residing in a major city without compromising on factors like air quality or access to natural amenities. The data reveals that nearly half of the households in Charleston are occupied by renters. Furthermore, the average size of apartments in Charleston is significantly larger than the national average, measuring approximately 967 square feet. With a robust job growth rate of 5.9%, it is no surprise that Charleston claims the title of the best city for renters in 2023.Plano, Texas rises to the top in 2nd place Claiming the second spot on RentCafe’s list, Plano has recently gained recognition as the "City of Excellence." It garners high rankings in two key areas: the local economy, where it secures the second position, and quality of life, where it ranks sixth. Plano's distinguished reputation for fostering academic success makes it an ideal destination for families seeking a city with exceptional public schools. Furthermore, the city boasts excellent air quality and a significant proportion of high-end apartments, accounting for 78.2% of the housing stock. Additionally, Plano serves as the headquarters for several major corporations, including Bank of America, Hewlett Packard, FedEx, JCPenney, and Pepsi. Consequently, it exhibits one of the highest job growth rates nationwide, further enhancing its appeal.The Top 10 Places to Live in 2023 For commercial real estate investors, understanding the dynamics of the rental market and the best cities for renters in 2023 is crucial. With the rising cost of living, particularly in terms of rent and mortgages, it becomes essential to identify cities that offer a compelling blend of affordability and quality of life. As RentCafe's data shows, Southern states have emerged as the premier region for renters, occupying the majority of the top 50 spots. This presents a compelling case study for commercial real estate investors looking to tap into rental markets with strong potential.
Late last year, the New York Times reported farmland values hit record highs. In 2022, cropland values increased by 12.4% nationwide, and Farmers National Company set a new record sales volume of $766 million, exceeding the previous record in 2021 of $750 million. While many asset classes in commercial real estate have weakened amidst the current economic instability, agriculture acreage is rising in demand among investors. And due to its finite availability, returns are expected to grow rapidly.In tandem with the post-pandemic economic conditions, the advent of new technologies shifted the way many farmers manage their land, in turn impacting the commercial real estate sector.Rise of Precision TechnologyOne of the most significant developments in recent years has been the use of precision agriculture technology. The global precision agriculture market is anticipated to expand at a compound annual growth rate (CAGR) of 13.40% between 2023-2028. This technology involves the use of sensors and other tools to collect data on soil, weather, and other factors that affect crop growth. Farmers can use this information to make more informed decisions about planting, fertilizing, and watering their crops. The result is more efficient and effective farming practices, leading to higher crop yields and greater profits.The use of precision agriculture technology has also led to changes in the way farmers manage their land. By collecting detailed data on soil quality, for example, farmers can identify areas of their fields that require more nutrients or water. This enables them to use these resources more efficiently, reducing the amount of land needed to produce the same amount of food – which can have major implications for land values and real estate activity.Use of DronesAnother significant development in agriculture technology is the use of drones, which are rising in use across commercial and small family-owned farms. Farmers can use drones with cameras and other sensors to monitor crop growth and identify areas needing attention. This technology allows farmers to identify problems early, such as pests or diseases, before they can spread and cause damage. It also enables farmers to assess the health of their crops more quickly and accurately, reducing the risk of crop loss.The use of drones has also had an impact on the real estate industry. With the ability to monitor crop growth more effectively, farmers can identify areas of their land that are not producing as well as they should be. This information can be used to make more informed decisions about whether to sell or lease the land, potentially leading to higher profits for the farmer and increased demand for real estate in the area.Artificial Intelligence’s ImpactThe use of artificial intelligence (AI) in agriculture is another area poised to significantly impact the industry. AI can be used to analyze vast amounts of data, including weather patterns, soil quality, and crop yields, to make predictions about future crop growth. This information can be used by farmers to make more informed decisions about planting and harvesting, reducing the risk of crop loss and increasing yields. Other possible applications of the technology may include the optimization of labor, early detection of pests and diseases, and better compliance with irrigation and fertilization regulations, per Forbes.The use of AI in agriculture also has the potential to lead to changes in the real estate industry. By providing more accurate predictions about crop yields and weather patterns, farmers can make better-informed decisions about land use. This could lead to an increase in demand for land that is suitable for certain types of crops, potentially leading to higher prices for real estate in these areas.Agriculture has been a critical sector of the economy for centuries, providing food and resources for human populations worldwide. Recent advancements in AgTech are significantly impacting the industry and demand for farmland, which experts believe isn’t changing anytime soon. According to Bloomberg, the rising values are believed to be part of “a decade-long trend.”
As home prices soar and the rental season reaches its peak, the desire to rent has become increasingly prominent, reflected in a surge in demand for apartments. According to RentCafe's research, certain cities are experiencing a significant uptick in listing activity and attracting considerable attention from prospective apartment hunters. June experienced a shift in popularity among renters, with the Midwest emerging as the most sought-after region, closely followed by the South. Notably, the South secures the highest number of spots in the June ranking, with a total of 12 cities. The Midwest closely trails with 10 cities, dominating the top four positions. Atlanta maintains its status as the highest-ranking city in the South for the third consecutive month, securing the seventh spot overall.Among these cities, Kansas City, MO, retains its position as the most desired city by renters in June, maintaining the top spot from the previous month. Overland Park, KS, located nearby, claims the second position, while Minneapolis ranks third. These cities experienced the highest engagement on RentCafe.com, as evidenced by the significant number of rental properties saved to favorites, personalized searches, limited availability of units, and overall high listing views.Nearly half of June's most sought-after top 30 cities are located in the South after six new locations in the region entered RentCafe's ranking. For example, North Carolina tech hub Charlotte made it to the 20th spot, while neighboring college town Greensboro is this month’s 30th most in-demand city for renters. Kansas City Takes the No. 1 Spot for JuneKansas City maintains a consistent reputation as a top-tier destination for living in the United States. This distinction is substantiated by various factors, including its expanding population, an abundance of employment opportunities, affordable cost of living, and a plethora of enjoyable activities to partake in. Additionally, residing in Kansas City grants convenient access to arguably the finest barbecue culinary experiences available. Additionally, Overland Park, the largest suburb of Kansas City, achieved a remarkable ascent in this month's rankings, climbing an impressive 78 spots to secure the second position. In June, Overland Park maintained a similar number of available apartments compared to the previous year. However, renters displayed a significant increase in engagement, with a 27% rise in listing views and a substantial 63% increase in saved personalized searches. Notably, the number of favorited apartments in the city experienced an astonishing nine-fold surge in comparison. For commercial real estate investors, this presents an opportunity to explore investment prospects in Kansas City and Overland Park's rental markets The significant climb in rankings and increased renter interest highlight the potential for strong returns on investment. Furthermore, the stable availability of apartments in the area, combined with the heightened renter engagement, suggests a healthy market with a strong demand-supply dynamic.
Airbnb has made a significant impact on the hospitality and tourism industry since its inception in 2008. However, due to the pandemic, global tourism experienced an unprecedented decline of 70 percent, leading to a significant transformation in the patterns and preferences in travel overall. As individuals gained greater freedom and adaptability once Covid restrictions lifted, their travel habits shifted, allowing for more flexible schedules, diverse destinations, and extended stays. Though many individuals returned to urban areas and popular international destinations following the pandemic, there is an enduring prevalence of distributed travel trends, which refers to a travel pattern or trend where tourists and travelers disperse themselves across a wider range of destinations rather than concentrating in a few popular or mainstream locations. Instead of flocking to major tourist hotspots, distributed travel encourages exploring lesser-known or off-the-beaten-path destinations, including smaller cities, small towns, and unique urban neighborhoods. It emphasizes a more diverse and balanced distribution of visitors, benefiting a broader range of destinations and fostering tourism growth beyond traditional hubs.Recently, Airbnb published data showcasing how their platform contributes to fostering sustainable, affordable, and immersive travel experiences. They achieve this by distributing guests and benefits not only within cities but also extending beyond overcrowded tourist hotspots. The focus is on emerging communities that are gaining popularity and may have limited or no hotel options available. Because Airbnb hosts are the primary- if not the only- providers of local accommodation and drivers of local tourism, they were able to provide housing for more than 44 million guests in areas where there are no hotels, which generated more than $10.5 billion in Host earnings. Thus, influencing guests to spend time and money in local bars, restaurants, tours, museums, and attractions in these smaller cities and towns. Based on Airbnb's data, roughly 65 percent of US Census tracts had Airbnb listings in 2022 but lacked any hotel presence. This indicates that guests have a significantly broader range of travel options when utilizing Airbnb, as compared to hotels, which are typically concentrated in more popular and heavily visited areas.It’s clear that one of Airbnb’s goals is to help support small cities and towns that may have flown under the radar when guests are booking trips. Airbnb firmly believes that their initiatives, resulting in guest expenditures within these areas, contribute to the development of significant microeconomies. Notably, since the onset of the pandemic, more than 2,100 cities and towns across the United States have welcomed their first Airbnb bookings. The report shows the “Top-booked US cities and towns with their first Airbnb booking in Q1 2023”, which include:
Madison, N.J. (July 18, 2023) - Coldwell Banker Commercial®, a renowned name in the commercial real estate industry and Anywhere brand (NYSE: HOUS) is pleased to announce its strategic partnership with CompStak, the leading provider of commercial real estate lease and sales comp data. This collaboration brings together two powerhouses in the field, aiming to enable brokers to access accurate, reliable, and up-to-date CRE data. As brokers navigate the dynamic landscape of commercial real estate, having access to granular and vetted data is essential for making informed decisions and driving successful transactions. The partnership between Coldwell Banker Commercial and CompStak aims to address this critical need by leveraging the strengths of both companies' wide-sweeping networks of CRE professionals across the US. CompStak has established itself as a leading provider of CRE data, amassing a vast and diverse database of crowd-sourced commercial property information. Their proprietary technology and robust platform aggregate and authenticate data from a large network of 35,000+ professionals at brokerages and appraisal firms, ensuring accuracy and completeness. With millions of data points on lease comparables, sales comparables, and property information, CompStak has become an indispensable resource for brokers seeking reliable insights. Coldwell Banker Commercial, a highly respected brand with a rich history in the commercial real estate industry, brings its extensive network of brokers and market expertise to the partnership. With a presence across the United States and internationally, Coldwell Banker Commercial is well-positioned to leverage CompStak's data to benefit its brokers and clients. Through this partnership, brokers affiliated with the Coldwell Banker Commercial brand will gain access to CompStak's comprehensive data platform, giving them a competitive edge in the marketplace. Brokerage professionals can now access rental rates, terms, concessions, property details, and other essential data points quickly and conveniently, enabling them to make data-driven decisions and deliver exceptional value to their clients. "We are thrilled to partner with Coldwell Banker Commercial," said Michael Mandel, Co-Founder & CEO of CompStak. "We've had a longstanding friendship with CBC's leadership and its brokers throughout the country who have found tremendous value in our data and analytics platform for years. We're very excited to formalize that relationship and build for the future." "We are excited to join forces with CompStak," said Dan Spiegel, SVP and Managing Director of Coldwell Banker Commercial. "Their dedication to data accuracy and innovation aligns perfectly with our commitment to delivering exceptional service to our brokers and clients. By providing our brokers with access to CompStak's platform, we are further enhancing our ability to meet the evolving needs of the commercial real estate market." This partnership reflects the shared commitment of CompStak and Coldwell Banker Commercial to provide brokers with the resources necessary to thrive in an increasingly data-driven industry. Equipping brokers with accurate and quality data can enhance their market expertise, build stronger relationships with clients, close deals quicker and more efficiently, and thrive in today's ever-changing marketplace. About CompStakCompStak is the leading platform for reliable and accurate CRE lease and sales comp data. Our data is crowdsourced from a large network of 35,000+ professionals at brokerages and appraisal firms and then rigorously verified by our team of real estate data experts. We are trusted by real estate investors, lenders, asset managers, brokers, and appraisers who rely on our data to drive their business forward. About Coldwell Banker CommercialThe Coldwell Banker Commercial® brand provides commercial real estate solutions serving the needs of owners and occupiers in the leasing, acquisition and disposition of all property types. With a collaborative network of independently owned and operated affiliates, the Coldwell Banker Commercial system comprises almost 200 offices and more than 3,000 affiliated professionals throughout the U.S. and internationally. For additional information, visit www.cbcworldwide.com.
The effects of inflation are being felt across the country – especially by those wanting to buy a home. With consumer prices rising, home prices soaring, and rising interest rates, saving money to buy a home and being able to afford one is becoming increasingly challenging. Additionally, economic uncertainty and the turmoil in the real estate market are making consumers hesitant to make such significant financial commitments. Therefore, build-to-rent homes present an excellent choice for individuals who value the flexibility of renting, as it eliminates the responsibilities and expenses associated with maintenance while providing the comfort and privacy typically found in a house. According to data by RentCafe, developers are building new single-family rentals at a rapid rate. 2022 witnessed a remarkable milestone in the housing sector, with a record-breaking completion of 14,541 new homes, marking a substantial 47% increase compared to 2021. The surge in the build-to-rent (BTR) trend can be attributed to the lasting impacts of the pandemic, such as the adoption of social distancing measures and remote work models. With 44,700 new BTR homes under construction across the nation, a staggering 97% occupancy level, (which is even higher than the 95% occupancy for apartments), it’s clear that this trend will only continue to rise in popularity. As explained by RentCafe, cities like Phoenix and Dallas have emerged as key hubs for rental homes, while Charlotte, NC; Atlanta, and Little Rock, AR, have experienced significant growth in single-family rentals over the past five years. In 2022, the construction of single-family homes for rent reached an unprecedented milestone, with over 14,500 completed houses, making it the strongest year on record. Additionally, in eight out of the top ten metropolitan areas for build-to-rent, the number of newly opened rental homes in 2022 reached its highest level in a decade. Notably, over the past two years, the scale and density of projects increased, with an average of approximately 130 units per property. Furthermore, the average size of each home also experienced growth, measuring 1,361 square feet in 2022, a 2.6% increase compared to the previous year.As demonstrated in the graph above, Dallas emerged as the leading metropolitan area in terms of the highest number of completed single-family rentals in 2022, with nearly 2,800 homes. This figure represents a remarkable 10-year peak in the city. Notably, the number of build-to-rent homes that became available in the Dallas metro last year was more than five times greater than the 500 units completed just a year prior. Following Dallas, Phoenix takes the second spot on the list, with over 1,500 build-to-rent homes being completed in 2022. This number represents a 9% decrease compared to the previous year. Atlanta secures the third position, with over 800 single-family homes for rent completed in 2022, marking a significant milestone that hasn't been reached in the past decade.As the popularity of build-to-rent (BTR) homes continues to soar, it will be fascinating to observe which cities seize the opportunity to construct and expand new single-family rental properties, considering the surging demand. Notably, prominent figures such as Elon Musk and Jeff Bezos have recognized the potential and are investing in single-family homes, as their value is expected to appreciate over time due to the increasing popularity and necessity of such properties. The attraction of single-family build-to-rent (BTR) communities for institutional investors is due to the housing shortage and the fact that these communities function similarly to multifamily properties. Investors find them appealing due to their remarkable lease renewal rates and the broad appeal they hold for a diverse range of renters. Additionally, consumers favor these communities as they often feature high-quality properties that provide a single-family residence experience.