Industry leaders of the single family for rent industry gathered in Dallas March 28-29 to share perspectives on the future on the space
Last week saw the launch of the inaugural Forecast: Future of Build for Rent event in Dallas. This year’s Forecast event explored today’s state of the single-family for rent industry and where it makes the most financial sense to invest in the space. The event welcomed over 300 attendees to the Thompson Dallas Hotel for two days of panel discussions, presentations and networking. Forty trailblazing industry leaders shared their perspectives and visions to help attendees elevate their organizations.
Speaker and event host, Tim Sullivan, Senior Managing Principal of Zonda, shared his key takeaways from the event.
Because the build for rent space is still in its adolescence, consistent metrics are difficult to define. However, two did percolate a number of times:
Op ex: 40%
Returns: 5% on cost (down from 6% one year ago)
With the macro environment changing and uncertainty hovering, there are still some fundamentals that provide buoyancy to housing and the build for rent space specifically: housing undersupply, job growth, and in-migration. It is no surprise that the regions that boast all of these factors are the build for rent magnets.
But there is no “easy button” for those who operate in this space (or those who want to).
If you are buying a single-family home for rent you’d better have a well-defined “buy box” that considers all demographic, pricing, unit size, and other factors key to choosing the right asset.
If you are developing, look for a covered land play and/or hire the expertise to help entitle and build the product since finished lot deals (and even the entitled deals) are harder to find.
If you are operating, use the data from your residents to learn and improve.
If you’re interested in attending upcoming industry events check out www.zondahome.com/events and follow us on social media for more information.