Currently, built-for-rent homes make up just 6% of new homes built in the U.S. every year.
However, according to real estate consulting firm Hunter Housing Economics, that number is expected to double by 2024. And banks and private investment are expected to put down $40 billion more than large homebuilders will spend to make it happen for the rental market over the next 18 months.
An estimated 100,000 rental units were built in 2021. Another 120,000 rental properties will be built next year to meet this demand. The trend is likely to surpass 200,000 new-construction units per year in 2023.
And Capstone Communities is building just that type of development here in Huntsville.
Located on about 30 acres south of the one-year-old Cottages at Old Monrovia, construction began this week on Phase II, the Villas at Old Monrovia. Both developments are off Research Park Boulevard near MidCity.
“Our first cottage development in Huntsville – The Cottages at Old Monrovia – leased up quickly and demonstrated Huntsville’s strong demand for this high-quality, flexible housing product,” said Jim Beatty, Capstone’s vice president of Development. “Huntsville’s booming population growth is a glowing representation of its strong economic foundation, and we’re excited for the opportunity to continue creating communities in Alabama’s largest city on the rise.”
The Villas at Old Monrovia is a 276-unit multifamily development with a mix of lofts, one- and two-story cottages, and two-story townhomes.
The low-density multifamily community is designed with a “new urbanism” style that will attract young professionals, empty-nesters and others to the growing area.
The Villas and the Cottages feature sidewalks, private yards, pocket parks and open green spaces.
Designed by Birmingham-based Nequette Architecture & Design, the Villas will include 9-foot to 12-foot ceilings, wood-grain flooring, in-unit washers and dryers, a smart home technology package, 24/7 on-call maintenance and optional enclosed garage parking.
Neighborhood amenities include courtyards with pavilions and grill stations, a central clubhouse with a resort-style pool, a state-of-the-art fitness center, dog park and valet trash.
“The Villas at Old Monrovia – and each of our cottage communities – is designed and built with the community’s evolving needs top of mind,” said Shep Nolen, president of Capstone’s in-house construction entity, CBI Construction Services. “The Villas are only a three-minute drive to some of Huntsville’s major employment hubs, including Cummings Research Park and Redstone Arsenal, which will offer a convenient option for the Rocket City’s expanding workforce to call home.”
Pre-leasing begins next spring with the first units expected to be completed in fall 2023 with full completion in spring 2024.