Unlock Savings This Money-Saving Monday with Built-to-Rent Homes!

High mortgage rates are prompting many Arizonans to explore build-to-rent communities as a practical housing solution. With mortgage costs remaining steep, homeownership is slipping out of reach for numerous residents throughout the state.

In response to this housing crisis, the rising trend of build-to-rent communities is reshaping Arizona’s rental market. These developments cater to those who aren’t ready to purchase a home yet still desire a quality living environment.

Paul Ruffino, a recent returnee to the Phoenix area, found a suitable option amidst his rental search. “We had been out of Phoenix for almost five years and returned to the area,” he explained, mentioning the income property they already owned. After exploring different rentals, they discovered an appealing neighborhood in north Phoenix.

Ruffino, who works in the hotel industry, noted the high-end amenities reminiscent of a luxury hotel in his new community. “The only thing you don’t have is room service, but these days with Instacart and DoorDash, you do,” he added, highlighting the convenience of modern living.

Branden Lombardi, president of BB Living in Scottsdale, emphasized that their build-to-rent environments provide affordable alternatives to homeownership. “The median home price today is $650,000, so to afford that, you need to earn around $160,000 a year,” he stated, pointing out the financial strain of significant monthly mortgage payments.

In contrast, renting at communities like Union Park costs between $2,500 to $3,500 monthly, a considerably more manageable figure. “That’s a big difference,” Lombardi remarked, noting the potential for various savings.

Additionally, Lombardi’s developments often strategically place housing near major employers, enhancing commuting convenience. “We’re close to TSMC, USAA, a lot of big employers,” he stated, recognizing the advantages of location for residents who prioritize proximity to work.

Many tenants view these rentals as temporary, with hopes to eventually purchase homes. “Most of our residents still have aspirations of homeownership,” Lombardi explained, observing that many who move out are likely to buy in the future.

For individuals like Ruffino, build-to-rent offers exceptional economic and lifestyle benefits. “We have a 4-bed, 3-bath home, 2-car huge garage,” he noted, expressing satisfaction with the spacious accommodations compared to typical apartments.

Furthermore, the fact that these homes are newly constructed adds to their appeal. “It hit all those buttons right away,” Ruffino said, considering the financial advantages of delaying a large down payment and hefty mortgage obligations.

This trend in build-to-rent communities is reshaping the housing market in Arizona, providing affordable options that are increasingly attractive amidst rising mortgage rates.