The construction of tens of thousands of rental homes could help rebalance the broader housing market. But critics warn it could widen inequalities, replacing options for would-be first-time homeowners.
“Our accountant, our financial adviser, just about everyone, kept asking, ‘Why aren’t you guys buying a house?’ ” Adam Gaston said. “For the generation above us, success equaled owning a home. But for our generation, that’s no longer the case.”Developers began building entire subdivisions of rental homes about a decade ago, in the aftermath of the Great Recession.
“Rental payments don’t go into building equity, which is a significant portion of most Americans’ household wealth,” said Daniel Pang, a research assistant at the Urban Institute’s Housing Finance Policy Center. “Homeownership is a vehicle, a pathway, through which a bunch of privileges can be delivered … It always has been.”Developers and investors, though, say they’re simply filling a need for more rental housing.
Earlier this year, Tim VanZile, 48, moved into a build-to-rent subdivision in Georgetown, Tex., about 30 miles north of Austin, with his wife and their deaf rescue dog, Soda. They pay $2,600 for a four-bedroom house and are saving to eventually buy their own place.
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