Construction of armored personnel carrier units continues, especially in the south
High interest rates and large monthly mortgage payments keep build-to-rent popular.
Rental construction is on the rise, and nowhere more so than in the South, where more than 61,200 units had broken ground as of last September, according to RealPage. These numbers place this region in front of the other three regions in the country combined.
In total, there are 104,160 armored personnel carrier units being built. In the West, 28,488 units are expected to be completed by the end of 2025, and 12,571 units are expected to be leased in the Midwest by mid-2025. The Northeast has a much smaller number of 1,687 that should be completed within the next 17 months.
Despite some talk that building in this sector may become less attractive, high interest rates above 7%, limited inventory of existing single-family homes and other factors make it difficult for potential buyers to buy versus rent. Investors also remained interested, as did developers. More than 60 developers have about 100,000 units in the works. Some are popular, like Scottsdale, Arizona-based Cavan, which has 3,408 units, most of which are concentrated in the South. Ohio-based Redwood Living is building in the Midwest and South and has 2,792 units under construction. Taylor Morrison is also based in Scottsdale, and has 2,578 units in the south. Rounding out the top five were American Homes 4 Rent out of Las Vegas, which is building 1,853 units in the Midwest, South and West, and Phoenix-based NexMetro Communities, which has 1,831 units under construction.
The size of homes varies depending on factors such as land availability and the size of amenities, making it difficult to determine an average unit size. But for example, the report mentioned a few. Located on 250 acres in Rosharon, Texas, Pradera Oaks Houston will contain 812 units developed by One Bridge Group. Floor plans will range from 1,400 square feet to 1,800 square feet and will rent for about $2,395 per month, which is higher than current monthly rents for traditional apartments for the area. The project is expected to be completed in mid-2025. In Dallas, Taylor Morrison is building a 51-unit Yardley Town Center in Anna, a Dallas suburb, with units ranging in size from 717 square feet to 1,030 square feet. Rents have not been set yet but the typical rate in the area is $1,676 per month.
