SAN ANTONIO—As the end of the year quickly approaches, companies are taking a look at the year in review and forecasting what may lie ahead for 2018. AHV Communities is a privately held developer, builder and operator of luxury single-family home rental communities. Its founder and CEO Mark Wolf recently discussed land strategy, labor and material costs, investor trends, buyer and renter demographics, and building and design trends in this exclusive.
GlobeSt.com: Tell us more about your land strategy for 2018.
Wolf: AHV Communities doesn't typically hold land we aren't immediately developing, however, we are currently acquiring land in Nashville, Atlanta, Austin and San Antonio. These markets are strong and have been for some time, and our immediate timeline doesn't put an undue amount of risk on us or our partners. While land is more competitive now, sellers value our rental approach over the traditional for-sale approach where frustration often comes with constant changes of large builders' needs, personnel and red tape. With our recent capital commitment and another soon-to-be-announced commitment, we are looking to expand and add to our pipeline of rental communities.
GlobeSt.com: How are you addressing challenges associated with labor and material costs?
Wolf: It's no industry secret that these challenges affect builders of all types and sizes. It impacts everyone. That's why it's important for us to take care of our subcontractors, vendors and suppliers, and build solid relationships and partnerships that are beneficial for both parties. This is critical to differentiating ourselves and we will remain disciplined in this approach. We also recently brought development in-house to help control and cut some substantial costs.
Can you describe renter demographics including millennials and baby boomers?
Wolf: Our single-family rental home communities appeal to a broad range of ages, from 30s to 50s, and a wide range of people including young professionals, young families, move-down couples and active adults. The increasing 'rentership society' is a result of a number of factors, challenges and lifestyle shifts including folks waiting longer to get married, the unaffordability of for-sale homes and the inability of consumers to qualify for financing. Additionally, there is a growing movement among consumers to maintain the flexibility to move at will and to retain the ability to spend earnings on things other than a down payment and home maintenance. However, many of these consumers are still very much drawn to the lifestyle of a single-family home. Single-family rental tenants get the benefits of a detached home with the freedom and flexibility of a lease.
GlobeSt.com: What are the building and design trends for 2018?
Wolf: Two words: Continued functionality, meaning we will continue to keep current on trends, but remain focused on making selections that are lasting or that age well in our single-family rental communities. Trends we see—and ones we will follow—include more relevant color tones, stainless steel appliances, updated and modernized appointments, fixtures and faucets, energy-efficient appliances and energy-saving LED lighting throughout the homes. To meet current design trends, we offer granite and quartz countertops, walk-in closets, washer and dryer hook-ups, and ceiling fans. In all of our communities, we look to add shared amenities such as walking trails, dog parks, fitness centers, luxury pools, clubhouses, open green space and barbecue/picnic areas. In other words, we will continue to offer wide-ranging interior packages less commonly found in rental homes and more commonly found in for-sale homes.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
