BUILT - TO - RENT: INSIGHTS FPCSTRUGGLEREGULATORYNAVIGATINGONTHE2022 1
MODERATORPANELISTS
2
ANIE DELGADO, AICP Project Director
DANVILLE LEADBETTER Co Founder KARLPrincipalPISCHKE
JEREMY FRANTZ, AICP Project Director
ADAM MENDEZ Senior Planner
WHAT IS BUILT - TO - RENT? A Growing Phenomenon
WHAT IS BUILT - TO - RENT? • Purpose Built Rental Communities • 1 , 2 & 3 Bedroom Detached Units – “Cottage Homes” • Low to Medium Density • Clustered Site Design • 6 to 30 acres • Amenitized with Single Familyesque Privacy 4
Source: American Community Data
Survey; ATTOM
CURRENT NATIONAL SCALE
► 88% of single-family rentals are owned by mom and pop investors who own 1-5 single-family rental homes.
► In a fragmented market, a large amount of small and unsophisticated portfolios across the United States present a market consolidation opportunity for investors and operators, particularly in the top 50 MSAs.
RCLCO for 2022 Florida Planning Conference | September 2022 | 5
Solutions; RCLCO 15 Million SFR Units in the United States and Ownership is Highly Fragmented 137.2 MM Total U.S. Housing Units 122.8 MM Total 46.4HouseholdsOccupiedMMRentedOccupiedHouseholds14.9MMSingle-FamilyRentals <2%6%4%9% 79% 100+… 11 to 100 6 to 10 3 to 5 1 to Total2 U.S. single-family Rental Properties by Portfolio Size
► RCLCO expects continued consolidation throughout the industry, particularly in large, urban markets where barriers to entry are high, home values are high, and cap rates continue to compress
RCLCO for 2022 Florida Planning Conference | September 2022 | 6 DEMOGRAPHICS ARE DESTINY 70%60%50%40%30%20%10%0%6,000,0005,000,0004,000,0003,000,0002,000,0001,000,0000 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50 52 54 56 58 60 62 64 66 68 70 72 74 76 78 80 82 84 86 88 90 92 94 Projected Population by Age; United States 2020-2030 2020 2030 % of Households with Children (2017 ACS Estimate) Source: United States Census Bureau; 2017 National Population Projections Tables; American Community Survey 1-Year Estimates Family-Age Household Growth is Substantial Over Next 10 Years, Along with Empty Nester “Lifestyle Renters”
prices have continued to rise faster than incomes, leaving many households unable to afford a single family home and pushing additional households towards the rental market. Single-Family Rentals present an opportunity for Millennials to afford the “American Dream” Source: US Census Bureau; RCLCO 400,000350,000300,000250,000200,000150,000100,00050,00006.05.04.03.02.01.00.0 1970 1974 1978 1982 1986 1990 1994 1998 2002 2006 2010 2014 Median Sales Price ($, RHS) Home Price to Income Ratio (LHS) Home Price to Income Ratio and Median Sales Price United States; 1970-2019
RCLCO for 2022 Florida Planning Conference | September 2022 | 7
AFFORDABILITY CHALLENGES
Home
RCLCO for 2022 Florida Planning Conference | September 2022 | 8
DEFINING A RAPIDLY EVOLVING PRODUCT TYPE
Source: RCLCO
RCLCO for 2022 Florida Planning Conference | September 2022 | 9 EVOLVING LOW-MID DENSITY RENTAL PRODUCT LANDSCAPE Product Type Picture Neighborhood Location Development Strategy Key Examples & Geographic Focus DENSITYSCALESLIDING MultifamilyHorizontal (AKA Single-Story or Unstacked Apartment style) Greenfield Lifestyle Suburb Middle-Income Suburb Alternative to multifamily apartments, providing additional privacy and space at a similar price point ChristopherNexMetro,Todd,Soltura Sun Belt & Rocky Mountain Region; Sun Belt Emerging BFR Infill)(Urban/SuburbanSFA Stable Urban Neighborhood Stable Suburb Located in in-town locations just outside of the urban core offering high-quality product for lifestyle renters RedPeak Platt TownhomesPark National BFR (Suburban)SFA Greenfield Lifestyle Suburb Middle-Income Suburb Provide smaller, lower-priced single family product in outlying suburbs or in MPCs. BB Living Sun Belt Markets BFR (Suburban,SFD MPCStyle) Greenfield Lifestyle Suburb Greenfield Value Suburb Provide traditional single family product in outlying suburbs or in MPCs. Located in areas with good school districts, proximate to other single family housing. AHV Communities Sun Belt Markets Source: Google Images; RCLCO 3-7 Units/Acre 9-14 Units/Acre
10 NARCOOSEE ROAD BTR Osceola, FL 27.5 Acres 198 Units 50K SF Retail 7.2 du/ac
11 CADENCE MULTI - FAMILY Mesa, AZ 16.4 Acres 194 Units 11.89 du/ac
12 THE LOGAN AT JOMAX Phoenix, AZ 12.5 Acres 141 Units 11.3 du/ac
13 CPA2021 - 00002 ALICO WEST AREA 9/ CENTERPLACEFortMyers,FLTextAmendment
14 DCI2021 - 00026 HOMES AT 81 WESTFortRPDMyers, FL 10 Acres 90 Units 9 du/ac
15 DCI2021 - 00026 HOMES AT 81 WESTFortRPDMyers, FL 10 Acres 90 Units 9 du/ac
16 ODYSSEY AT THE FORUM Fort Myers, FL 12 10.75129AcresUnitsdu/ac
17 ALTAIR BY SOLTURA Fort Myers, FL 12 13.33160AcresUnitsdu/ac
18 SCHOOLHOUSE BY SOLTURAFort Myers, FL 11.32 Acres 139 Units 12.27 du/ac
19 SOLTURA AT EAST TERRY Bonita Springs, FL 20 gross acres 16.3 56%12.27200buildableunitsdu/acOpenSpace
DESIGN MATTERS
Dover, Kohl & Partners
20
* Victor Dover
• Image Right is more than 2.5x as Dense as the image to the Left
DESIGN MATTERS
• DENSITY IS NOT BAD
• Image Left up to 5 units per acre
20XX BUILT TO RENT 21
20XX BUILT TO RENT 22
DESIGN MATTERS
Artesia at Lakewood Ranch Odyssey at The Forum
THE FUTURE OF BUILT - TO - RENT A New Normal
QUESTIONS? ANIE DELGADO, AICP amendez@leegov.comDevelopmentDept.LeeSeniorMENDEZADAMPlannerCountyofCommunity Danville@GroupSolturaCoLEADBETTERDANVILLEFounderDevelopmentsolturadevelopment.com KARL kpischke@rclco.comConsultingRCLCOPrincipalPISCHKERealEstate FRANTZ,JEREMY AICP Project Director RVi Planning + Landscape jfrantz@rviplanning.comArchitecture 24 Project Director RVi Planning + Landscape adelgado@rviplanning.comArchitecture