Our Residential Architects and Designers Continue to Find New Opportunities That Put Residents First
The Kansas City Business Journal recently reported on an exponential increase in single family for rent developments. Citing RentCafe in their report, KCBJ indicates that Kansas City is the seventh-biggest market for single-family for-rent homes, having built more than 600 of the properties in 2023.
What accounts for the growth of this market? Americans want alternatives to buying a home with prohibitive interest rates. Their preference for rentals has also grown in recent years, given the significant improvements in design concepts for community-based living in the multifamily sector, not to mention the amenities that are now expected in today’s planned neighborhoods.
This market’s growth is of particular interest to our Kansas City architecture firm. We are committed to creating lasting, appealing designs that provide affordable and accessible homes for residents. This market allows us to demonstrate our belief in exceptional residential architecture and design for all. We provide innovative concepts that set the standard for how we build and design these properties now and in the future.
The Single-Family For-Rent Market Analysis
To gain a better understanding of today’s single-family for-rent market, consider these three insights.
- Our housing shortage is still on the rise: Zillow, an online real estate marketplace, reports that the U.S. housing shortage shows no signs of slowing up, and may, in fact, be getting worse. In 2022, there were 4.5 million homes that needed to be built, which is almost a 5 percent increase compared to 2021’s shortage of 4.3 million.
- A large share of renters: An analysis from the Pew Foundation points out that, in 2019, 36 percent of U.S. residents were renters. The majority of recently reported calculations for 2024 show that this number has only slightly decreased to approximately 34 percent.
- The economics of renting: Many housing market analysts have determined that for renters considering buying a home, renting remains the affordable option. Facing high interest rates and high asking prices, PBS NewsHour reports that renting will currently save some potential homebuyers money if they don’t already own a home that can serve as equity toward their next purchase.
Given these statistics and facts, it’s easy to understand the value that single-family for-rent homes provide for those who want to get one step closer to the dream of homeownership – by saving money to buy when conditions are more favorable.
This value for would-be homeowners also provides opportunities for a residential architecture firm to partner with developers to create well-planned neighborhoods and homes for those who decide to rent. Opportunities are abundant for architecture, design, engineering and construction teams, whose activity has slowed in the housing market.
Opportunities For Residential Architects In the Single-Family For-Rent Typology
Builder magazine’s transcribed roundtable discussion from industry leaders at the Pacific Coast Builders’ Conference highlights several key factors that have kept this market strong, even as more recent economic factors have shaken every market’s decision-making:
- Identifying ideal locations for development.
- Ensuring that the operator’s brand is centered on residents’ needs.
- A clear understanding of a community’s demographics.
- An awareness that agility matters in an ever-changing economic environment.
Residential architecture firms can adopt the strengths identified in this discussion as they pursue single-family for-rent residential architecture and design.
NSPJ Architects in Kansas City has delivered exceptional residential architecture for a wide range of single-family for-rent communities in several states. Our extensive experience offers the following value for developers and residents alike:
- Elevated living concepts to reach high-quality design standards that improve resident retention.
- Versatile designs to meet the changing needs of residents over time.
- Landscape architecture and outdoor recreational amenities that foster a sense of community, belonging and a neighborhood feel for residents.
- Smart material selection for sustainability and affordability without compromising on aesthetics, quality or resident preferences.
- Concepts that enhance site selection priorities. Amenities, wayfinding and a seamless integration of the natural environment encourage a “live, work and play” mindset; this, in turn, stimulates a mutually beneficial relationship between the local economy and residents.
The Future Of Residential Architecture and Design In the Single-Family For-Rent Market
Challenges in the housing market may appear prohibitive; yet, for the short- and long-term, the single-family for-rent market offers a great deal of promise for all stakeholders. This market will prove resilient for those who desire eventual entry to homeownership, are considering a temporary move or just prefer the lifestyle that comes with renting.
Regardless of the circumstances, residents reap the rewards of aesthetically relevant and meaningful designed homes in communities that offer an opportunity to thrive, even in adverse market conditions.
Residential architecture firms are uniquely positioned to provide a relief for housing inequalities and shortages, which is a testament to the power of sound building and design. NSPJ, residential architects near you, look forward to developing an even more robust portfolio for the single-family for-rent typology. We remain inspired by the chance to demonstrate our skill, integrity and people-first approach to continue our long history of design excellence.
