The sights and sounds of new-build construction aren't new if you live in the suburbs. But there's something different.
From the outside, it looks like a new-build community with homes and yards. Inside, it doesn't look any different, either.
New homes featuring walk-in showers and granite countertops. Look closer, and the signs show it's something new.
Homes being built for rent are a concept Jonathan Catharine jumped in on.
"For me, renting is better than buying a house," Catharine said.
Catharine owned a home for years. But when he discovered a new-build rental community, he says it made fiscal sense.
"When you buy a house, I was paying almost $7,000 every year on taxes," Catharine explained. "When my AC was broken, I spent almost $8,000 just to fix my AC."
It's not just saving money on maintenance. Summerwell Sunterra in Katy offers even more.
"We will maintain all of the landscaping, pest control. We set up your trash service," Greystar community manager Sarah Hodges explained. "It's really a very simple process."
Summerwell Sunterra will soon offer more than 150 homes. They start at $2,400 a month.
Tenants get access to the gym, pool, and recreation areas the same way homeowners in the masterplan community do.
Greystar is behind the rental homes. The company manages nearly 120 similar communities across the country.
The company says demand is being driven by millennials.
"They may have their first kid now, their second dog, and so they're looking to have that yard," Greystar managing director of development Brian Herwald explained. "To have that third bedroom or fourth bedroom whereas before they didn't need all that space."
Real estate experts say it's not just about space but price.
Houston Association of Realtors data shows that in the last five years, the average greater Houston area single-family home has climbed from $300,000 to nearly $425,000.
Boulevard Realty owner Bill Baldwin said that price has made home ownership difficult for some.
"$2,800 for a single-family house, three bedrooms, two baths, with some amenities, that's a pretty good deal," Baldwin said. "If they had to buy that house for $500,000, their mortgage would be higher than that."
Rent Café, which tracks rentals, says that within the next two years, 4,800 new-build rentals will be available in the Houston area, the third-largest number in the country.
Rent Café data shows that 10 years ago, about 4,000 of these new homes were built for rent. Now, the same data shows that in this past year, 28,000 homes were built.
"If they continue to maintain them, keep them up, and offer the amenities people are looking for, they're going to be in very high demand for a long period of time," Baldwin said.
As new-build rental communities are built, Baldwin hears about the impact on property values. He said so far, there hasn't been any.
"They do need to be maintained, and what we are seeing with the large-scale rental communities is that they have been well maintained these last few years," Baldwin explained. "The proof will be in the pudding. Will they continue to maintain them to the level that people find acceptable?"
Maintenance falls on property management and not the tenant.
"It's saving a lot of money," Catharine said. "When something is wrong with the AC, paint, you don't waste money from your own pocket."
If you're interested in a new-build rental, real estate experts say to treat them like an apartment complex. Before you sign a lease, visit the neighborhood, talk to other tenants, and read online reviews.
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