<description>&lt;div&gt;Build-to-Rent (BTR) may be the biggest innovation in real estate this decade and NexMetro Communities is arguably the originator. Since 2010, NexMetro has been developing BTR projects, with over 55 projects across the U.S., offering cottage-style homes specifically designed for renters. Hartmann provides insight into BTR’s growth, his unique business strategies, and the challenges in reshaping real estate for a new generation.&lt;br&gt; &lt;strong&gt;&lt;br&gt; Understanding Build-to-Rent&lt;/strong&gt;&lt;br&gt; Hartmann explains BTR as homes designed exclusively for rental, offering tenants a single-family home lifestyle without ownership. NexMetro’s developments include a range of single-story cottages that foster a sense of privacy while delivering amenities typically found in multifamily units, such as gyms and pools. According to Hartmann, BTR appeals to people who value flexibility and quality without the commitment of home ownership, filling a gap in the housing market for those who prefer to rent but want more than an apartment.&lt;br&gt; &lt;strong&gt;&lt;br&gt; The Three Pillars of BTR&lt;/strong&gt;&lt;br&gt; Hartmann distinguishes three BTR categories:&lt;br&gt; &lt;br&gt; 1. Single-family homes for rent.&lt;br&gt; &lt;br&gt; 2. Townhomes purpose-built for renting.&lt;br&gt; &lt;br&gt; 3. Cottage-style multifamily units, NexMetro’s specialty, blending the appeal of detached homes with the advantages of multifamily living.&lt;br&gt; &lt;br&gt; &lt;strong&gt;Timing Is Everything in Real Estate&lt;/strong&gt;&lt;br&gt; Real estate cycles are pivotal to innovation and profitability. As Miller points out, real estate evolves through “waves,” such as the mall boom in the 1970s or the single-family rental trend in the 2010s. BTR is shaping up to be the next big wave, attracting increasing interest from renters and institutional investors.&lt;br&gt; &lt;strong&gt;&lt;br&gt; Consumer-Centric Development&lt;/strong&gt;&lt;br&gt; Understanding renters’ needs has been crucial for NexMetro’s success. For example, through consumer research, they’ve learned that amenities like clubhouses or dual bathroom sinks were less important than space efficiency. This consumer-first approach allows NexMetro to streamline costs while delivering a product that resonates with its target demographic.&lt;br&gt; &lt;strong&gt;&lt;br&gt; Challenges and Future Outlook&lt;/strong&gt;&lt;br&gt; Zoning and permitting obstacles are major hurdles. NexMetro often needs 18 months or more to secure zoning approvals, with success rates around 60%. Political and community factors complicate projects, especially as cities grapple with housing shortages and balancing growth.&lt;br&gt; &lt;br&gt; Hartmann remains optimistic about the future, especially with real estate facing declining supply due to high interest rates and reduced construction starts. This scarcity may benefit BTR, positioning NexMetro to meet rising rental demand in areas where traditional homeownership is out of reach or less desirable.&lt;br&gt; &lt;br&gt; —&lt;br&gt; &lt;br&gt; Have questions or feedback about this episode? Drop us a note at Onward@Fundrise.com. &lt;br&gt; &lt;em&gt;&lt;br&gt; Onward &lt;/em&gt;is hosted by Ben Miller, co-founder and CEO of &lt;a href="http://fundrise.com"&gt;Fundrise&lt;/a&gt;. Podcast production by The Podcast Consultant. Music by Seaplane Armada. &lt;br&gt; &lt;br&gt; About Fundrise &lt;br&gt; With over 2 million users, Fundrise is America's largest direct-to-investor alternative asset investment platform. Since 2012, our mission has been to build a better financial system by empowering the individual. We make it easier and more efficient than ever for anyone to invest in institutional-quality private alternative assets — all at the touch of a button. &lt;br&gt; &lt;br&gt; Please see &lt;a href="http://fundrise.com/oc"&gt;fundrise.com/oc&lt;/a&gt; for more information on all of the Fundrise-sponsored investment funds and products, including each fund’s offering document(s). &lt;br&gt; &lt;br&gt; Want to see the specific assets that make up and power Fundrise portfolios? Check out our active and past projects at &lt;a href="http://www.fundrise.com/assets"&gt;www.fundrise.com/assets&lt;/a&gt;.&lt;/div&gt; </description>

Onward, a Fundrise Production

Fundrise

39: The Rise of Build-to-Rent: A New Era in Real Estate, with Josh Hartmann CEO of NexMetro

OCT 30, 202455 MIN
Onward, a Fundrise Production

39: The Rise of Build-to-Rent: A New Era in Real Estate, with Josh Hartmann CEO of NexMetro

OCT 30, 202455 MIN

Description

<div>Build-to-Rent (BTR) may be the biggest innovation in real estate this decade and NexMetro Communities is arguably the originator. Since 2010, NexMetro has been developing BTR projects, with over 55 projects across the U.S., offering cottage-style homes specifically designed for renters. Hartmann provides insight into BTR’s growth, his unique business strategies, and the challenges in reshaping real estate for a new generation.<br> <strong><br> Understanding Build-to-Rent</strong><br> Hartmann explains BTR as homes designed exclusively for rental, offering tenants a single-family home lifestyle without ownership. NexMetro’s developments include a range of single-story cottages that foster a sense of privacy while delivering amenities typically found in multifamily units, such as gyms and pools. According to Hartmann, BTR appeals to people who value flexibility and quality without the commitment of home ownership, filling a gap in the housing market for those who prefer to rent but want more than an apartment.<br> <strong><br> The Three Pillars of BTR</strong><br> Hartmann distinguishes three BTR categories:<br> <br> 1. Single-family homes for rent.<br> <br> 2. Townhomes purpose-built for renting.<br> <br> 3. Cottage-style multifamily units, NexMetro’s specialty, blending the appeal of detached homes with the advantages of multifamily living.<br> <br> <strong>Timing Is Everything in Real Estate</strong><br> Real estate cycles are pivotal to innovation and profitability. As Miller points out, real estate evolves through “waves,” such as the mall boom in the 1970s or the single-family rental trend in the 2010s. BTR is shaping up to be the next big wave, attracting increasing interest from renters and institutional investors.<br> <strong><br> Consumer-Centric Development</strong><br> Understanding renters’ needs has been crucial for NexMetro’s success. For example, through consumer research, they’ve learned that amenities like clubhouses or dual bathroom sinks were less important than space efficiency. This consumer-first approach allows NexMetro to streamline costs while delivering a product that resonates with its target demographic.<br> <strong><br> Challenges and Future Outlook</strong><br> Zoning and permitting obstacles are major hurdles. NexMetro often needs 18 months or more to secure zoning approvals, with success rates around 60%. Political and community factors complicate projects, especially as cities grapple with housing shortages and balancing growth.<br> <br> Hartmann remains optimistic about the future, especially with real estate facing declining supply due to high interest rates and reduced construction starts. This scarcity may benefit BTR, positioning NexMetro to meet rising rental demand in areas where traditional homeownership is out of reach or less desirable.<br> <br> —<br> <br> Have questions or feedback about this episode? Drop us a note at [email protected]. <br> <em><br> Onward </em>is hosted by Ben Miller, co-founder and CEO of <a href="http://fundrise.com">Fundrise</a>. Podcast production by The Podcast Consultant. Music by Seaplane Armada. <br> <br> About Fundrise <br> With over 2 million users, Fundrise is America's largest direct-to-investor alternative asset investment platform. Since 2012, our mission has been to build a better financial system by empowering the individual. We make it easier and more efficient than ever for anyone to invest in institutional-quality private alternative assets — all at the touch of a button. <br> <br> Please see <a href="http://fundrise.com/oc">fundrise.com/oc</a> for more information on all of the Fundrise-sponsored investment funds and products, including each fund’s offering document(s). <br> <br> Want to see the specific assets that make up and power Fundrise portfolios? Check out our active and past projects at <a href="http://www.fundrise.com/assets">www.fundrise.com/assets</a>.</div>