D.R. Horton, the nation’s largest homebuilder by volume, will commit $1 billion to its rental property portfolio over the next few years.
In an article published by CoStar News on Nov. 10, D.R. Horton executives said they are “positioning rental operations to be a significant contributor” to its revenue and returns in the coming years.
According to Amber Siegler at Wando Woodlands, a D.R. Horton community in North Augusta, build-to-rent is a brand new model for D.R. Horton’s presence in the area.
She said that D.R. Horton has a sizeable footprint already in Augusta and across the river into South Carolina. In fact, she said 20 communities are either already established or planned in the area. The community she works in, Wando Woodlands, is entering its seventh phase of development.
T.J. Washburn, president of Winchester Homes in Augusta, said he would welcome more competition to the area if D.R. Horton does indeed become a bigger player in the area’s rental property market.
“I’d like to see different product types be built in the CSRA. It’s not a ‘one size fits all’ approach,” he said. “I welcome both rental and for-sale builders coming in with more volume. All the trends are for more for-rent homes as opposed to ownership. People like the flexibility of renting and don’t have the same mindset 20 years ago of foreseeing them owning the same home for 20 years.
Matt Mills of the Southeastern Company echoed this, saying, “You see a lot of people these days becoming renters by choice rather than renters by necessity. They want fewer headaches than what comes from dealing with homeownership.”
Siegler said she had heard that sentiment cropping up more and more as well.
“We are hearing that. People just need to get in homes, and rent-to-own is more appealing to them. We also have first-time buyers or renters looking for places that are a little smaller or more affordable, like a townhome,” Siegler said.
Siegler also said that military personnel at Fort Gordon, which is close to multiple D.R. Horton communities, know they won’t be here for an extended period of time and are increasingly looking to rent.
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Several local homebuilders polled said that D.R. Horton has a reputation for building home faster and at a lower cost than other production homebuilders. Siegler said that has changed as of late.
“It certainly used to be that way,” she said. “Material delays and COVID-19 has our suppliers stretched thin. Our build time used to be 90-110 days, and now it’s out to four to six months. When we do have delays, we try to proceed with whatever else we can do on a home while we wait for whatever we need.”
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John Youngblood works at Sherman & Hemstreet and specializes in residential properties. He knew well of D.R. Horton’s prolific nature.
“They buy out entire subdivisions and build homes in an assembly line fashion. They can build for less than most builders in the area. They still build a good, quality home, and their homes sell very quickly. I’ve not heard any complaints about construction,” he said.
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Youngblood said the market for rentals is “off the charts” in Augusta, and the area has the perfect storm for rentals.
“When you’ve got Fort Gordon, the hospital community, the Cyber Center, Plant Vogtle… what’s happening is as soon as a property hits our website, it’s gone the same week or the same day it’s posted. In years past, a property would sit for two to four weeks,” he said. “The demand is here and it is here to stay.”
He attributed an additional uptick in interest to Evans being named as Money’s Best Place to Live in 2020 and Martinez being ranked as number 21.
“If people are ready for a change and see something like that, they figure to at least look into it more,” Youngblood said. “We’re in the best market we have ever been in right now.”
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Siegler said she thinks this could be a boom for the Augusta area.
“I feel that build-to-rent will continue to be a trend,” she said. “We will continue with it for various neighborhoods of ours and other homebuilders could jump on board, too.”
Corporate media relations for D.R. Horton could not be reached for comment despite multiple attempts.
Tyler Strong is the Business Editor for The Augusta Press. Reach him at tyler@theaugustapress.com
