TL;DR - investment companies are scarfing up lots in incomplete subdivisions to build rental homes and they aren't just renting them to whomever has the money
I live in one of those subdivisions that failed to complete before the housing bust. About two years ago an investment group purchased the remaining eleven lots and built homes strictly for the purpose of renting. HOA rules did pay off as they had to keep to architectural rules and even minimum square footage; 2400+
After talking to their builder, turned out it was two investment groups that tend to work together, he was working on three separate subdivisions at one time. All homes are rented by management companies, full background checks, the likes. Being able to rent one, even this far out from Atlanta (think 25 miles) apparently is very desirable and not as simple as showing up with the money. After a few years they either sell out right or do a limited rent to own.
The surprise to me is that there is still substantial turnover in renters. Used to be the rule was stay out of the sub 1k a month rent; the homes near me are 1200-1500 a month; but out of eleven rentals I figure maybe half have had the same families for the first year.
So while I see some subdivision have new building starting and even some that never got the first house down I look close for the signs. Big home builders will be building to sell to homeowners, if the builder doesn't display his name except on permits its likely for rent.
I live in one of those subdivisions that failed to complete before the housing bust. About two years ago an investment group purchased the remaining eleven lots and built homes strictly for the purpose of renting. HOA rules did pay off as they had to keep to architectural rules and even minimum square footage; 2400+
After talking to their builder, turned out it was two investment groups that tend to work together, he was working on three separate subdivisions at one time. All homes are rented by management companies, full background checks, the likes. Being able to rent one, even this far out from Atlanta (think 25 miles) apparently is very desirable and not as simple as showing up with the money. After a few years they either sell out right or do a limited rent to own.
The surprise to me is that there is still substantial turnover in renters. Used to be the rule was stay out of the sub 1k a month rent; the homes near me are 1200-1500 a month; but out of eleven rentals I figure maybe half have had the same families for the first year.
So while I see some subdivision have new building starting and even some that never got the first house down I look close for the signs. Big home builders will be building to sell to homeowners, if the builder doesn't display his name except on permits its likely for rent.