After an unpredictable year, the housing market is starting to look to 2023 and scope out the trends for next year’s sector.
JNS Homes founder and CEO Nick Zoumas recently shared his thoughts in the Multi-Housing News article “Single-family Rental Market Trends to Watch in 2023.”
As a leading developer of single-family rental homes, JNS Homes has seen first-hand how the shifting real estate market has impacted this industry sector.
As mentioned in the MHN article:
“Lender capital offering for the [single-family rental/build-to-rent] sector is dwindling, affected by the Fed’s repeated actions to halt inflation. Banks have broadly and significantly pulled back their lending and, although there are still options for both construction financing and stabilized financing, these are more expensive, with both rates and spreads blown out.”
Nick calls 2022 “a year of dichotomy for the SFR/BTR sector.” While there have been ample opportunities thanks to strong consumer demand, rising interest rates and construction costs have slowed the momentum to develop more rental housing.
But, despite those challenges, more home buyers will remain locked out of the market, driving more demand for rental. This especially includes Millennials and Gen Z’ers, who are reaching a point in their lives where they need more space but are frequently boxed out of the purchasing market.
“Moreover, with housing affordability being stymied by higher rates, the renter pool will only increase further, buoying demand,” Nick said.
As we look to 2023, the Fed’s efforts to tamp down inflation will result in higher interest rates for several months, pushing more potential homeowners to rent. As this happens, inventory will need to meet demand.
JNS Homes is at the forefront of build-to-rent developments, working closely with institutional investors to help them grow their real estate portfolios and capitalize on this fast-growing asset class. Our high-quality construction and strategic engineering expertise have positioned us as a trusted resource in the single-family rental market.
While the housing market remains in flux, one thing is for sure, according to MHN sources — construction in 2023 will be much cheaper than in 2022, while rents will continue to rise. This presents a unique window of opportunity for those looking to break into the single-family rental or build-to-rent industries.
As the traditional persona of renters changes, JNS Homes is taking into account the amenities and needs of the new class of renters. From office spaces to more outdoor features, we’re building homes that are attractive single-family rentals and build-to-rent communities for today’s modern renters.
Interested in learning more? Check out our development projects and current projects. If you’re a contractor looking to partner with JNS Homes, you can submit a form on our Subcontractors page to be considered.