Is There a Future in Build to Rent in Worcester?

[Brian J Allen]

This may seem like a surprising topic when you think about Worcester. After all, building in Worcester is challenging due to limited land availability. Unlike cities like Phoenix or Las Vegas, where there is ample undeveloped land, Worcester's development must work within existing constraints.

Currently, some of my clients are effectively participating in Build to Rent by default. They purchase properties, rehab, or build with the hope of increasing the value, and then find themselves holding onto these projects and renting them out when they can't find another suitable investment. This isn't always their initial plan, but it often turns out to be a profitable strategy.

Several clients have considered buying condos to rent due to the lower maintenance requirements. However, they quickly realize that condo fees can significantly impact profitability. As a result, many have shifted their focus to purchasing attached single-family homes or fully rehabbed multifamily properties. These options allow them to control expenses better, attract similar tenants, and often achieve higher rents with lower costs.

I believe there is a promising market for purpose-built attached single-family homes for rent in Worcester. There is demand for this type of housing, and buyer-landlords can achieve a decent return on investment with new properties while benefiting from long-term appreciation.

While Worcester may not offer the vast expanses of land seen in other cities, thoughtful development and strategic investment in Build to Rent projects can meet the needs of residents and provide solid returns for investors.