A recent study by RENTCafé has shown that the build to rent sector is expected to experience a slowdown in the next two years. This is due to the upcoming economic cooldown, which will begin in 2022 and last until 2023. While this may be bad news for some, it could actually be a great opportunity for others. In this blog post, we will take a closer look at what this means for the build to rent industry and explore how investors can capitalize on this trend.
The build to rent sector has been on a tear in recent years, with the number of new projects increasing significantly. This is due to the strong demand for rental units, as more and more people are choosing to rent instead of buy. However, this trend is expected to reverse in the next two years, as the economy begins to cool down. This will lead to a decrease in demand for rental units, which will put pressure on rents and occupancy rates.
While this may seem like bad news for the build to rent industry, there is actually an opportunity here for savvy investors. Those who are able to identify and invest in build to projects that are well-positioned for the economic downturn will be able to reap significant rewards.
So, if you’re looking to invest in the build to rent sector, be sure to keep an eye on the economic forecast and look for projects that are positioned for success in a down market. With careful planning and execution, you can make the most of this opportunity and set yourself up for long-term success.
What does this mean for build to rent investors?
For build to rent investors, this news may seem discouraging at first. However, it is important to remember that all investments come with some degree of risk. The key is to identify opportunities where the potential rewards outweigh the risks. In the case of build to rent, there is still significant potential for profit even during an economic downturn.