The Build-to-Rent Boom

We recently sat down Tricor’s EVP of Development and Construction, Joel Thomas, to get his thoughts on the current state of the SFR space, the housing market, and what renters value most in 2022.

What’s drawing people to single-family rentals and build-to-rent communities?
We all have seen the downward trend of home ownership possibly due to the level of commitment, the lack of mobility, and not wanting to be tied down by a 30-year mortgage. With the shift in priorities for millennial home buyers in addition to record inflation, people are less eager, or possibly not able, to pay the down payment for a mortgage.

What’s the current state of the build-to-rent, single-family housing market?
Single-family rentals and Build-to-rent communities are on the rise even in the current economic environment. As an investment tool, build-to-rent neighborhoods are viewed as a longer-term hold over years, modeled with a cap rate, versus lot-by-lot sales that might be targeted for an entry or mid-level home buyer. For renters, this is a time that we are seeing record migration across the United States, an increase in people working from home, and the growing desire to move to less populated areas. Renters would rather leave behind apartment living to work from home in a single-family rental with more space, a yard, and other luxuries that a single-family home has to offer.

What are the most important features to renters in 2022?

We are seeing regional differences and different demands from the suburbs and urban infill properties. Professional property management has been one of the most significant features of institutional rental properties. Tenants can get maintenance for everything on their house with one phone call, versus having to figure how to remedy an issue with different contractors. We see a lot of desire for open bright floorplans, tech packages, and two-car garages. Depending on the community size and density, amenities range from multiuse pathways, dog parks, pools, gyms, and full-scale clubhouses with a kitchen, lounge, and pool.


How is BTR different than the for-sale market? 

The demand of the for-sale market is moving some home builders to spec build, which is similar, but the BTR process is simplified logistically. In BTR, there are no homeowners, so we work with our partners to develop all floor plans, elevations, and specifications to be installed in and on every house. So, for example, if we are doing a 230-home community, all vanities, cabinets, lights, and kitchen countertops will be the same, there are no options. This helps alleviate purchasing, infield mistakes, as well as some of the supply-chain issues we are seeing in the industry. When you tell the appliance manufacturer you are purchasing 230 of the exact same refrigerators at once, it makes it much easier than one at a time. Because there are no homeowners, the required ‘home buyer meetings’ are not needed. We work with our partners directly to ensure they are happy with our work versus having to satisfy 230 individual homebuyers.


How does Tricor create that inviting new home feeling that people are drawn to in BTR communities?

We want to present communities that are inviting, so being thoughtful of items like the arrival sequence (if the property is standalone) is important. We also focus on our housing product, we do not reuse the same floorplans and specifications for every community. We take the time to work with our partners, clients, and investors to prepare fresh plans on each property

Tricor Breaks Ground In Denton, Texas

20 Mar, 2023
Tricor recently broke ground at Carmel Villas in Denton, Texas. This comes after Tricor completed the design and management of the municipal approval process for the first phase, which is approximately 18 acres. Located at the intersection of Pockrus Page Road and Carmel Villas Drive, this project is five minutes away from The University of North Texas and is also near Interstate 35 allowing for easy access to downtown Dallas. The villas will feature three unique floor plans that are approximately 1,565 square feet. Two-bedroom and three-bedroom villas will be available and will also include two-car garages. The first phase of Carmel Villas will offer a 4,420 square foot amenity center that includes a gym, conference room, lounge, kitchen, outdoor pool, grills, and patio area. Residents will also be able to enjoy the dog park on-site. As the Developer Manager and General Contractor, Tricor has begun trenching and plumbing rough-ins for approximately 36 of the 230 homes in phase one. This project is scheduled to be completed in April of 2023.

An Update From Tucson's CM James Bayes

20 Mar, 2023
Tricor has a unique opportunity in Tucson to capitalize as a secondary market at a time when the labor market is saturated and workers outweigh the current work available. I personally get to be the intermediary between work and labor, and see that growth can only occur when all facets are taken into consideration strategically and responsibly. From the perspective of our labor capacity, we have tripled our GC base, widening our full scope capability as well as our specialty vendors list to include new services such as pool remodel and repair, glass specialists, and flexible workers who are available for service calls 24/7. Along with branching out and widening our base, we have also successfully developed a reliable and skilled contractor core that has been with us in Tucson from the start, and continues to stick with us as we grow together. In regards to increasing our capacity for work, we have strengthened our current partnerships with major clients, earning the title as a preferred partner with each client we have done business with by treating them like they’re the only client we have-providing timely communication and updates throughout the job’s life cycle, as well as problem solving when things don’t go as planned, and overall working constantly to earn trust throughout every step of each project by working to consistently exceed client expectations. Lastly, from the perspective of growing our capacity as a business to handle and facilitate the work we’ve earned to the labor we’ve curated, I have started the process of recruiting a second CM for Tucson. Before the end of this year, my goal is to source several well-qualified candidates to begin the application process to become a construction manager in Tucson as we plan for what that next chapter will require. Of course, this is all contingent upon growth in the market, but I can confidently say we are laying down the foundation to build something big here, and it’s exciting to be apart of!
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