This week on The Home Builder Digital Marketing Podcast, Jim Jacobi of Parkland Communities and Parkland Residential joins Greg and Kevin to explore the build-to-rent market.
The growth of the build-to-rent market is being partly fueled by the current financial environment. Jim says,
“Interest rates are helping build-to-rent because obviously, just cost associated with down payment and your monthly rate. The current interest rate climate is definitely helping it out.”
A major benefit of build-to-rent for home builders is the cost-effectiveness of mass production while still maintaining quality. Jim explains,
“One of the pros is build-for-rent, we put the same floor, the same paint, the same kitchen cabinets, the same countertops. It is rinse, wash, repeat and it’s just build as fast as we can build. We drive costs down. It’s easier to manage and maintain. It’s a simpler process on the build-for-rent side. We put lots of upgrades in our homes. We just don’t do standard builder-grade quality stuff, cheap stuff. We like to do high-quality finishes. At the end of the day, it is our reputation on the line, so we want it to look good and want it built right, last the test time.”
The outlook for build-to-rent ventures is positive and provides a solution to the current housing demand. Jim says,
“…it’s the safest investments you have, that I think will last a test of time just looking at trends of home values over the last 10 or 20 years. I think it’s here to stay. In my opinion, build-to-rent is kind of in the first inning and trying to figure it out. It’ll become more prevalent and more acceptable with time when done in the right way, ethically, non-predatory manner. I think it serves a big need and fills a void in our communities.”
Listen to this week’s episode to learn more about the build-to-rent market.
About the Guest:
Jim Jacobi is a self-made success and proven entrepreneur with an extensive career in residential development and home building around Atlanta, GA. He has founded several successful companies in his career, including the three that he currently leads: Parkland Communities, a multifaceted real estate development and investment firm; Parkland Residential, an innovative build-to-rent company and Parkland Homes, a for-sale home building company.
Jacobi has created and sold two prominent companies. JEH Homes purchased by Taylor Morrison for $70+ million in 2015 and Alliance Engineering + Planning, which sold in November 2022 to LJA Engineering for $20 million.
At present, Jacobi has more than 1,500 lots in his development pipeline, including multiple build-to-rent projects focused on providing housing for the missing middle.