REAL ESTATE INVESTMENTS
A new approach to the new U.S. Housing Reality Tim Haywood Regional Vice President, Middle East at Walton International Group explains that changes brought by a mix of progression through life and post-pandemic conditions are increasing the appeal of Build To Rent homes in the USA, and thus playing to the firm’s core strengths of pre-development land research and acquisition and land development
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A new way to plug the housing gap
he housing market in the U.S. has been hot property for well over a year already. With land increasingly hard to come by and mortgage rates still at near-record lows, demand has surged since the start of the pandemic – and with it, home prices. Sentiment has moderated to some extent more recently. Pending home sales, for example, dipped in July, marking two consecutive months of declines, according to the National Association of Realtors1. Yet supply remains constrained.
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Home Council (NRHC) Single-Family Rental Market Index, remained near its record highs in the second quarter of 20213. At 84, the index is sharply higher year over year from 76. “The U.S. homebuilding industry c o nt i n u es to a d a pt to d i f fe re nt opportunities and challenges accordingly, in line with this trend towards the single-family rental market,” said Tim Haywood, Regional Vice President, Middle East at Walton International Group, the real estate investment and land asset management company.
As a result, affordability continues to suffer. In turn, this is leaving a growing number of potential homebuyers with little choice other than to delay ownership. The latest results from the Beracha, Hardin & Johnson Buy vs. Rent Index, for instance, show prices at or near their peaks in Dallas, Denver, Houston, Kansas City, Seattle and Miami2. Renting is therefore a more viable option. Meanwhile, another leading indicator, the quarterly John Burns Real Estate Consulting (JBREC) / National Rental
Banking and Finance news in the MEA market
An ever-more appealing option, both on the construction and consumer sides, is the concept of single-family build-to-rent (BTR) homes. In particular it appeals to aging millennials, who prefer to rent a home before they transition into family formation years. At the same time, the pandemic fuelled the demand for extra space, stemming from workfrom-home policies which has shifted thinking away from long-held notions of the importance of being close to downtown locations.
