Real Estate

Why ‘build to rent’ communities are booming in Houston

Published

2 weeks ago

February 26, 2025

Houston is experiencing a significant surge in build-to-rent (BTR) communities, emerging as one of the top markets for this innovative housing solution in the United States. As of 2025, the city ranks 5th nationwide in the construction of new single-family homes for rent, with 4,613 units expected to be built this year alone.

Driving Factors

Several key factors are fueling this boom:

Affordability Challenges: With Houston’s home prices soaring 43% between 2018 and 2023, many residents find themselves priced out of traditional homeownership. BTR communities offer a more affordable alternative, allowing tenants to save around $1,000 per month compared to buying a starter home.

Economic Growth: Houston’s thriving job market and business-friendly environment make it an attractive destination for professionals seeking flexible living arrangements.
Demographic Shifts: Millennials and Gen Z, in particular, are drawn to BTR communities as they navigate student loan debt and seek to avoid high property taxes while maintaining proximity to urban centers.
Space and Amenities: BTR homes often provide larger layouts, premium finishes, and access to community amenities like pools and fitness centers, offering a blend of apartment convenience and single-family home comfort.

The BTR Landscape

Houston’s BTR sector has seen remarkable growth:

Over 6,000 units were delivered across the city in 2023.
An additional 4,836 units are under construction, slated for completion in 2026.
Cypress leads with 1,007 new rental units, while other areas like Rosharon (922 units) and Hockley (466 units) also see significant development.

Impact on the Housing Market

The rise of BTR communities is reshaping Houston’s rental landscape:

Flexibility for Residents: BTR offers the perfect balance between renting and homeownership, catering to those seeking stability without long-term commitments.
Investment Opportunity: Developers and investors are capitalizing on the growing demand, with companies like Camden Development and McLain Companies leading major projects.
Suburban Expansion: As urban areas become more congested and expensive, BTR properties in suburban locations offer more space and affordability while maintaining connectivity to city centers.

Looking Ahead

As Houston continues to grow and evolve, BTR communities are poised to play an increasingly important role in the city’s housing ecosystem. With over 21,800 BTR units planned or under construction across Texas in 2025, this trend shows no signs of slowing down.

While BTR communities offer a solution to current housing challenges, their long-term impact on homeownership rates and community dynamics remains to be seen. As the market matures, it will be crucial to monitor how these developments integrate into Houston’s diverse neighborhoods and affect overall housing affordability.

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Business & Money

How Agents Can Thrive Under New Real Estate Rules

Published

8 months ago

July 26, 2024

Bolanle Media Staff

The real estate industry is undergoing significant changes due to recent legal settlements and new regulations. These shifts present both challenges and opportunities for agents. By adapting strategies and focusing on value-added services, real estate professionals cannot only survive but thrive in this new landscape.

Here’s how:

Understand the Key Changes

Sellers are no longer required to pay buyer’s agent commissions.
Written agreements with buyers detailing services and costs are now mandatory.
Offers of compensation for buyer’s agents will no longer be listed on Multiple Listing Services.
These will be required before touring homes.

6 Strategies for Success

1. Educate Clients and Yourself

Stay informed about the latest changes and be prepared to explain them clearly to clients. This knowledge will position you as an expert and trusted advisor. Consider creating educational materials or hosting seminars for potential clients to demonstrate your expertise.

2. Diversify Your Service Offerings

With buyers potentially facing higher out-of-pocket costs, consider offering a range of service levels at different price points. This could include:

- Full-service representation
- À la carte services
- Flat-fee options for specific tasks

3. Emphasize Your Value Proposition

With increased transparency, it’s crucial to clearly articulate the value you bring to transactions. Develop a strong personal brand and marketing strategy that highlights your unique skills, local market knowledge, and track record of success.

4. Embrace Technology

Leverage technology to streamline your processes and offer enhanced services to clients. This could include:

- Virtual tours and 3D property walkthroughs
- Advanced market analysis tools
- Client relationship management (CRM) systems

5. Focus on Building Relationships

With fewer buyers potentially working with agents, focus on building strong, long-term relationships with clients. Provide exceptional service that leads to referrals and repeat business.

6. Develop Negotiation Skills

As commission structures become more flexible, strong negotiation skills will be crucial. Invest in training to enhance your ability to advocate for your clients and your own interests.
Data Insights

While specific data on the impact of these new rules is still emerging, some trends are worth noting:

The average commission rate for real estate agents has been declining. In 2022, the average rate was 5.37%, down from 5.61% in 2015 (Source: Real Trends).
A 2023 National Association of Realtors survey found that 26% of buyers did not use an agent, up from 17% in 2012.

These trends suggest that agents who can adapt to the new landscape and demonstrate clear value will be best positioned for success.

The changes in real estate regulations present an opportunity for innovative and client-focused agents to differentiate themselves. By embracing transparency, offering flexible service models, and continually educating both themselves and their clients, agents can thrive in this new era of real estate.

Remember, as one industry professional noted, “Never a better time to get into the business. Agents are scared of change. It’s the best time to capitalize on the changes and adapting. As agents drop out they leave behind market share that you can pick up.”

By viewing these changes as an opportunity rather than a threat, and by focusing on providing exceptional value to clients, real estate agents can navigate this shifting landscape successfully and build thriving, sustainable businesses.

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