Real Estate

Real Estate If You Build It, They Will Rent

By Shelley Sakala, Realtor

While everyone has been focusing on the surge in home values over the past couple of years, a new housing trend has quietly emerged: buildto-rent single-family housing. The concept blends the features of houses, apartments, and condos into fresh approach that’s making people reconsider their views on renting.

There was a time when renting was only something you did “until you were able to buy.” But times – and perceptions – have changed. Over the past decade a new class of home renters has emerged: those who can afford to buy a house but prefer not to. Builders have recognized this opportunity and responded by creating gated luxury rental communities of singlefamily houses. These houses come with an impressive slate of amenities, such as swimming pools, fitness centers, and resort-style grounds. The interiors have high-end design features, and often include a modest backyard and private patio area. Like an apartment, the financial commitment is limited to the terms of the lease. Once the lease is up, residents are free to move on without worrying about finding a buyer. And unlike an apartment, residents never hear the footsteps of upstairs neighbors, nor will they share a wall with anyone.

In our post-pandemic, work-from-home culture, many people have grown weary of life inside a vertical tower shared with 300 other renters. Downtown areas throughout the country are emptying out as residents look for homes with a little more breathing room. And with many companies shifting to permanent remote work situations, the chance to bid farewell to elevators and staircases has never been more appealing.

Part of the lure of single-family housing rentals is the maintenance-free aspect. A swimming pool you never have to clean. A house you never have to paint. Professionally landscaped green spaces you’ll never have to mow, trim, prune, thin, or rake.

If there are any cons to go with the list of pros, it would be the absence of investment potential. Unlike a home purchase, which serves not only as a domicile but also as an appreciable asset, a single-family rental is not an investment. You’ll neither make nor lose money by living there. Home ownership presents several financial opportunities that renting does not, such as building equity and borrowing against it.

The National Association of Home Builders reports a nearly 30% increase of build-to-rent single-family homes from 2019 to 2020. And there are no signs of this growth slowing down. If you’re curious about the concept of single-family rental communities, check out Deer Valley’s own Avilla (avilladeervalley.com). This amenity-rich, pet-friendly community boasts beautiful common areas, a lot of privacy, and easy freeway access. With the new semiconductor manufacturing facility coming to the North Phoenix corridor, I would anticipate properties like Avilla to be in high demand for people relocating to fill those 1,900 forthcoming new jobs.

For a housing market that’s creaking at the hinges as our local population expands, the addition of new communities may provide some much-needed relief for anyone in need of a home-sweet-home.

Shelley Sakala is a local Realtor with The Sakala Group. See their ad on the back cover for more information.

IHP Capital Partners, Cachet Homes to Bring 162 Single-Family Homes to North Phoenix

IHP Capital Partners, one of the nation’s leading real estate investment firms, and Cachet Homes, an Arizona-based luxury homebuilder, have formed a joint venture to acquire a 66.7-acre parcel in North Phoenix for the development and construction of 162 single-family homes. Within the Union Park at Norterra master-planned community, the project includes 102 alley-loaded lots and 60 traditional front-loaded lots. Development is underway and project completion is anticipated in quarter three of 2022. Sales are scheduled to open in summer 2022. “Demand for new homes in Phoenix remains strong and North Phoenix continues to draw new residents and corporations, particularly within the semiconductor industry,” says Eric Koff, senior vice president at IHP Capital Partners. “Union Park at Norterra is a vibrant mixed-use community in a spacious desert setting with a wealth of amenities. IHP is pleased to partner with Cachet Homes, a well-known and respected builder in the Phoenix region, to deliver much-needed new homes that offer character and a preferred lifestyle.”

The joint venture is developing two product types, designed to reflect Spanish, Desert Craftsman and Mission Revival architectural styles. The alleyloaded lots, named The Retreat, are 49 feet by 90 feet in size, or 4,410 total square feet. Home sizes will range from 2,272 to 2,931 square feet and will include three to four bedrooms and two and a half to three and a half bathrooms. Encore, the larger, traditional style lots, line the exterior border of the acquired parcel. These lots are 65 feet by 120 feet in size, or 7,800 total square feet. Home sizes range from 2,831 to 4,115 square feet and will include three to five bedrooms and three and a half to five bathrooms. Pricing will be announced in 2022.

Backbone infrastructure and construction of all amenities within Union Park at Norterra are complete. Phase two of the masterplan broke ground in late 2020. Approximately 700 residents currently live in the community with about 304 homes complete.

“Set against the Union Peak Sonoran Preserve backdrop, Union Park at Norterra is a brilliantly designed community that embraces the region’s natural landscape and incorporates a preferred farmhouse-inspired architectural style,” says Matthew Cody, president at Cachet Homes. “With a nearly 30-year history building luxury homes in Arizona and a successful Phase I in Union Park at Norterra, Cachet Homes is excited to partner with IHP on the last phase of this special project, bringing a new energy to the growing North Phoenix region.”

“The community’s location amidst the expanding local semiconductor industry and proximity to nearby employment centers makes Union Park at Norterra a prime destination for move-up homebuyers,” adds Koff. “The influx of new Arizona residents and eager millennial home seekers also support the remarkable rise in demand for quality new homes in North Phoenix.”