The trend in Build for Rent (BFR) known as “Horizontal Apartment Communities” refers to a type of residential development where single-family rental properties are built in a clustered or community-style layout, similar to traditional apartment complexes, but with detached or townhouse-style units. This concept combines the benefits of single-family living with the convenience and amenities typically found in apartment communities. Horizontal Apartment Communities are gaining popularity in the real estate market due to their appeal to renters seeking a suburban or low-density living experience with shared amenities. Here’s an explanation of this trend:
Design and Layout
- In Horizontal Apartment Communities, the rental units are built close to one another in a cluster or row-style layout, often with detached or attached townhouse designs. This creates a community feel, similar to traditional apartment complexes, but without high-rise or multi-story buildings.
- The units are usually separated by small yards or green spaces, providing residents with some outdoor privacy and the sense of having their own home.
- The community may include shared amenities such as a clubhouse, swimming pool, fitness center, walking trails, parks, and playgrounds.
Rental Appeal
- The design and layout of Horizontal Apartment Communities appeal to renters who prefer single-family living but desire the convenience and amenities typically found in apartment complexes.
- Renters are attracted to the suburban or low-density feel of these communities, offering a sense of space and privacy compared to traditional apartment living.
Target Market
- Horizontal Apartment Communities often target young professionals, families, and empty nesters who desire the benefits of a suburban lifestyle without the responsibilities of homeownership.
- The communities may also attract renters seeking an affordable and flexible housing option with access to shared amenities.
Developer and Investor Interest
- Developers and investors are increasingly interested in Horizontal Apartment Communities due to the strong demand for rental properties and the appeal of this innovative housing model.
- This trend allows developers to cater to a specific niche within the rental market and create a unique living experience for tenants.
Advantages
- Community Feel: Horizontal Apartment Communities offer a sense of community and neighborliness, making them appealing to renters who enjoy social interactions and shared amenities.
- Amenity-Rich Living: Tenants in these communities can enjoy various amenities, such as fitness centers, pools, and recreational spaces, that enhance their overall living experience.
- Rental Income Potential: From an investment perspective, Horizontal Apartment Communities can generate steady rental income, especially in areas with strong demand for rental properties.
- Low Maintenance: For tenants, living in a Horizontal Apartment Community typically involves lower maintenance responsibilities compared to traditional single-family homes.
Considerations
- Location: The success of Horizontal Apartment Communities relies on selecting the right location with a suitable demographic and proximity to essential amenities, schools, and job centers.
- Tenant Preferences: Understanding the preferences of the target market is essential to design the community layout and amenities effectively.
- Property Management: Proper property management is crucial to maintain the community’s appeal and provide a positive living experience for tenants.
Overall, the trend of Horizontal Apartment Communities in the Build for Rent sector offers a unique blend of single-family living and apartment-style amenities, attracting a specific segment of the rental market seeking suburban living with community appeal. As this trend continues to gain traction, it presents an attractive investment opportunity for developers and investors looking to meet the evolving preferences of modern renters.
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