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New Start-Up Shows How BTR Communities Will Shape the Rental Industry
A partnership between New Growth Living, Montgomery Street Partners and Rockpoint Group has delivered its first community in Sacramento.
By Kelsi Maree Borland | June 17, 2021
Build-to-rent single-family home communities could be one way to combat housing affordability. A coalition between New Growth Living, Montgomery Street Partners and Rockpoint Group is addressing housing affordability with new construction single-family home communities that target renters, and they have already unveiled their first project—Tanzanite, a Sacramento community with 211 homes.
“We cannot continue to deliver the same housing options we have in the past at a time when housing’s economic and social demands are so quickly evolving. There is an economic, demographic, and cultural evolution occurring. All municipalities and builders alike need to recognize it, understand it, embrace it, and most of all, plan for it. Well-designed Single-Family for Rent and Build-to-Rent communities will continue to be part of the solution,” Dan Nethercott, co-founder of New Growth Living, tells GlobeSt.com.
The build-to-rent community is still emerging, but New Growth Living and partners plan to deliver 1,600 homes across the US. “The Single-Family Build-to-Rent story is being written now but it’s still fragmented and clunky,” says Nethercott. “Some of the most desirable residents, with much to contribute to their community, don’t necessarily want to own a home in the traditional sense. Increasingly, we will see cities embrace development of high quality, amenity-rich rental communities.”
While housing affordability is playing a key role in the emergence of the build-to-rent market, changing renter needs are also changing, and homebuilders need to respond. “It’s critical to recognize that home ownership is not as important, desirable or attainable to influential and growing segments of society as in the past. Redefining what a Rentable Lifestyle Community can be will attract and retain young talent, while appealing to and retaining long-standing members of the community,” explains Nethercott.
However, it isn’t only developers that need to recognize these changes but also local governments that have the power to change zoning and construction regulations. “Municipalities must adapt their thinking and begin providing more of what consumers want. That includes a broad range of housing types and sizes with the newest technology,” says Nethercott. “Thoughtfully crafted rentable communities offer a safe, maintenance-free, flexible lifestyle – all in a neighborhood setting people are proud to call home.”
Tanzanite represents these new trends. Located in the North Natomas neighborhood of Sacramento, the property is a walkable, family-friendly haven with community parks, amenities and smart technology throughout. “Most of us want to live in a village setting that is safe, has a walkable scale, defined boundaries, attractive character and a culture of neighborly concern that also encourages individual responsibility,” says Nethercott. “New Growth Living designs our neighborhoods such as Tanzanite to enhance these values.
Tanzanite has thoughtfully designed duet homes; connective alleys with studio units over a shared garage space. These attributes extend beyond the four walls of the dwelling unit with shared amenity areas allow group activities and encourage residents to get to know one another.”
The property is schedule to open in the first half of 2022. In the meantime, the development group is actively looking for more development opportunities in Texas and Florida.