I'm sure I don't have to tell you, the housing market is INSANE...it's exploded everywhere, but especially in Florida, as a record number of people have moved here in the last two years. Inventory is low, prices are high, and first-time buyers are being priced out of the market, since it's tough to compete with out-of-state cash buyers, and corporate investors.
A new community called NexMetro is coming to Florida. They've already been operating in Arizona for the last ten years, and plan to bring rental-only communities to Florida, particularly the Tampa Bay area.
There's a rental community planned for Pasco County, with more to come in Hillsborough and Manatee Counties. These communities will consist of single-family homes where 100% off the properties are occupied by renters, with no option to buy. Vice President of Development for NexMetro says these communities provide a great housing opportunity for families who don't want to live in an apartment, but aren't looking to purchase a home. He says the community will give renters more options.
One potential problem I see is that, even though this will create more homes, it will still not create more inventory for buyers because none of the properties will be for sale. It also doesn't provide a path to home ownership for first-time buyers, which is something a lot of people are frustrated with in this crazy market....the same problems that exist now will still exist with these communities. There will still be relatively low housing supply, and high demand...which means the cost to rent in these communities will probably not be cheap. Don't get me wrong, renters need good, safe places to live, and not everyone wants to be in an apartment. I think this could be a great option for a lot of people, but I don't see it alleviating many of the real estate issues we're seeing today. I'd love to know your thoughts. Are you planning to live in one of these communities?
Thumbnail photo: Getty Images