In 33 Holdings, Property Management

The cost of living is starting to take its toll on the quality of living. Everyone deserves a safe place to live. However, most cities around the world are dealing with a distinct set of problems, affordable housing being one of the most common.

Cities that are growing too quickly and don’t have enough affordable housing options have trouble giving their people reasonable accommodations. It becomes an alarming scenario when even people who have steady jobs can’t afford to buy or rent a home.

Rents are still too high and don’t match up with incomes. This means that many people must spend more than half of their monthly income on housing. In many cases people who are working in mid-profile or low-profile professional capacities can’t afford to live close to the communities they serve.

Instead, they must pay for the time and money it takes to commute.
But the problem of affordable housing varies in different places. The housing market is affected not only by market conditions, but also by sociopolitical factors, environmental factors, and the rules and regulations of countries and cities. To make sure the housing market works well, steps must be taken to deal with interdependencies on the supply side and encourage innovation on the demand side.

Real-estate investments too can be cyclic, and it needs some vertical diversification to reap benefits from this golden asset class. Timing the investments into the right kind of demand within the real-estate segment can keep the momentum going for private equity real-estate and institutional investors.

Build-to-Rent started as a grass-root strategy from the real-estate developers for leveraging on little opportunities, over time it has transpired into a multi-billion-dollar investment medium with increasing stakes of large institutional investors, REITs (Publicly traded), and a sizeable number of private equity real estate investors bestowing their interests for wealth generation.

In a public report by Hunter Housing Economics, investments into build-to-rent development in the next 18 months are expected around $40 billion, and at even a part of standing true is reassurance on the emerging demand for rent-to-build opportunities.

A new report from Zillow says that the average price of a home in the U.S. hit $287,148 in May 2021, which is 13.2% more than in May 2020. That’s the biggest increase since the company started keeping track of home prices in 1996. CoreLogic says that rents have gone up by 10.9% over the past year. Still, that’s less of a jump than the price of a house.

Rising home prices aren’t a match for rising incomes. In simple terms, for the sustainable growth of a city, sustainable housing is imperative, and build-to-rent is a proven model of sustainable housing solution, leading to wealth generation for institutional investors’ money in real estate.

Unfolding global economic uncertainties warrant the need for sustainable development and sustainable kind of investments for passive income and wealth generation.

Eying the promising solution as a build-to-rent model, any strategic investments from private equity investments in this sphere can be profound for wealth generation.

To know more about opportunities in private equity investments over build-to-rent, reach out to the team.

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