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hey there I saw an article and I just I don't know what to make of it um let's just get right into it uh this one here it says grey star starts its first built to rent community in the Houston area and I was like what built to rent why would you do something like that we're already in a place where we have very little well we've got what apparently is low supply of uh single family homes and now we're we're building them to rent only how is that going to affect uh the supply in general and are these homes being counted as uh single family homes in in the inventory and therefore saying that you know we're getting more homes online when we're really just getting more rentals so um anyway I took a look at this and it says the grey star has started construction on its first built to rent community in Greater Houston the community will have 156 homes with three or four bedrooms the detached single family homes and town homes will have access to community amenities including Santa's planned Lagoon and lazy river playgrounds parks and tennis courts and let me just say we're going to go over there and take a look at it it looks pretty cool okay and it's it's a it is a wonder of the world type development okay I'm not I'm you I say everything's bigger in Texas it's like wow I just I can't believe it so it says while prices for the rentals have not been disclosed four sale homes in Santa range from about 300,000 to 800,000 and what's funny in my in my research uh earlier is the the properties were supposed to come online the houses were supposed to be between 200,000 and 500,000 but that was like when the when the plan was put together and that just shows how the inflation has uh just eaten away at uh at you know purchasing power of homes says the average price of a single family rental in Greater Houston was about $2,340 in a August marking the second highest rate on record as prices have been steadily increasing according to the Houston Association of Realtors the second highest rate on record $2,340 a month for a single family home rental it says Santa is the third best selling master plan Community Nationwide according to rclco real estate Consulting the 2300 acre Community saw a 49% increase in sales year-over-year in 2023 with a total of 669 so they sold 669 homes in this development and that would seem like that would seem like a lot it says uh grey Stars built for rent businesses managed nationally through summerwell across 50 communities comprising nearly 10,000 homes this initiative focuses on boosting single family housing Supply in high demand markets and there's where I think everyone is making a big error okay you'll see economists say that it's a supply problem and we need to build more houses and I have said I don't know that that's the case in the sense that these houses there's 10,000 homes that are built for rent currently just by this one company um I believe like 3% of the overall Market is uh single family rentals and I believe there's another like I it's it's a ridiculous number of mom and popop designated places that own significantly more rental single family homes in the United States it says nearly 2,000 built to rent single family homes have been built in Houston the past 5 years ranking it fourth in the nation according to rent Cafe Houston ranked third in the nation of an upcoming built to rent communities with roughly 2600 single family units under construction so we're talking massive amount ounts of uh units coming online that if you're counting those as a single family residence and not as a rental unit you're going to skew the numbers and so when people say we need to build more housing and that's going to drop the price of houses in general I've I've been very skeptical of that and I just as as an example just look at St Louis let's look at some of the communities in St Louis where um there's houses that are say over $250,000 average um within those areas it would be very hard to build more units and if you did build more units the prices would still be high because the land cost at this stage is is expensive versus what it was in the 1950s and if you go out way out to say like Wentzville and really the line of development out west yes you can get a home out there but that's not going to increase the the supply of homes in communities like in the in the metro area that's an hour and a half drive into St Louis every day I don't know many people people that want to do that so let's take a look at this uh at this Santa have you ever seen anything like this um it is just fascinating it's you know when we talked about the numbers uh it's a 2300 acre master plan Community it's the it calls for 7,000 homes so out of that only a thousand of them maybe are going to be rentals even though you know even then it's like you could have just done so but 7,000 homes as well as a crystal lagoons amenity uh Lakes Parks playgrounds and an expansive amenity village with a clubhouse and pool overlooking Lagoon I just I just wanted to oh shoot I wanted I wanted you to see the amenities but look at this they're literally building a lagoon with u with with like like sand and water and like it's it's just it's just breathtaking so someday in my life I'm going to have to get down there I'm not criticizing people for building to rent all I'm saying is is that there's this real issue of how are we counting what's being built and if we want to lower well if we want to lower the price of of homes for sale which I don't know that many people do because if you live in a house do you really want the price to go down in your neighborhood it's okay with somebody else's neighborhood but yours um I don't I don't know that um if we if we I just don't see building enough homes to make this Supply situ ation go away uh the way people think just the way I'm looking at it but anyway what do you think do you think that by building these single family rentals do you think that's helping the housing Supply uh one of my bigger concerns has been the the price for renting is so high okay the cost to rent is so high younger uh younger people aren't able to save any more of their uh money to put forth for a down payment or to you know help make help make a better balance sheet to go buy a house ever they could just be permanent renters and I just find that to be um uh uncomfortable the idea that you would live all your life and never have the option to financially to be able to buy a home and own something um it's just it's not the way I I want to see things so with that I think I'm going to head out Sun Tera um thousand homes you know single family rentals would you want to live I mean that's another issue would you really want to live in a community that's like you own it and everyone else around you uh rents we have a we have a community in St Louis that is is highly rentals I mean more more rentals than owners at this point in time and I don't know that it's I don't know that it's really a

Panacea that's what I got for you today um you tell me what you think in the comments am I right Am I Wrong do we do we want lots of single family rentals all throughout the United States and built for rent communities popping up everywhere uh that's a really nice house but you can only rent it seems odd anyway thanks for watching thanks for listening I'll catch you on the next one