A land brokerage company based in Irvine, The Hoffman Company, has sold 26 acres of land that Sancerra Communities and STG Capital Partners will use to build a rent-only townhome community in Southwest Riverside County, California.
“The Southwest Riverside County/Temecula submarket is attractive from an investment standpoint. With year-over-year rent growth approaching 20%, vacancy rates hovering near 3% and one of the fastest-growing populations in the Inland Empire, the submarket has outperformed most markets across the country since the start of the pandemic,”Marcus Cook, Managing Partner of Sancerra Communities
We Covered this in our Weekly Wire Roundup
What is Build-to-Rent?
Build to Rent (BTR) refers to purpose-built housing designed for rent rather than sale. Schemes usually offer longer tenancy agreements and are often professionally managed by the owner or operator.
Is Build-to-Rent the Next Big Thing in the Housing Market?
“We have seen single-family rents rising by 7% to 10% a year over the past twelve months in many areas,” writes Brad Hunter, a consultant on new housing developments at Hunter Housing Economics.
Brad points out five reasons that the BTR market is expanding fast. These include:
- Home prices are getting out of reach for the young
- The need for sufficient space for home offices
- Millennials need more home space to keep dogs
- Millennials have kids in large numbers
- Household formation rates are increasing
Where does Build-to-Rent Thrive?
Simply put, where land is plentiful and cheap.
City of Wildomar
“California’s development process is complex relative to other parts of the country, so the state builds fewer homes than are needed each year. Sancerra was formed to address California’s housing shortage, and we are thankful for the opportunity to work with the City of Wildomar to bring this new housing alternative to its community,”Marcus Cook, Managing Partner of Sancerra Communities
Other Stories about Housing and Real Estate Market in Riverside and San Bernardino
Californians living close to the beach (the coast) have moved to hills and mountains in the Inland Empire. A pandemic-triggered situation induced the influx of middle-class families to this area. According to an estimate by the Wall Street Journal, the increase in families moving to the Inland Empire grew by 50% in the last year, making it 250k people moving to this area.
Ontario becomes California’s homebuilding hot spot. Ontario recently passed Irvine Ranch as SoCal’s new home hub. It marks Inland Empire’s emergence as the new hot spot for new homeowners. Real Estate consulting firm John Burns “ranked Ontario Ranch as the region’s top-selling master-planned community and No. 5 nationally“.
According to Burns, the ranch sold 1,292 homes last year, a 71% jump from 755 sales in 2019.
Leal Master Plan: The 160-acre Leal property in Eastvale is the Next Big Business Opportunity.
In December 2017, the City of Eastvale adopted the Leal Master Plan, a plan to develop the 160-acre Leal property located at 58th Street, Hamner Avenue, Limonite Avenue, and Scholar Way. The Leal Master Plan establishes the City’s vision of the site as a major, mixed-use retail, office, housing, and civic development serving Eastvale and the region.
Coachella Valley: Study Shows Palm Desert City as the Most Popular Remote-Owner Property Destination.
Coachella Valley Economic Partnership (CVEP) and Visit Greater Palm Springs, the official tourism marketing agency for the Coachella Valley, partnered to study second home ownership in the Coachella Valley.
CVEP supports startups, from incubation to launch to daily operation. It manages the Palm Springs iHub, and the Business Services Center and organizes professional training events.
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