Forget the headlines. The real story behind today’s housing market is more complex than you think. Jay Byce, president of ResiBuilt, joins Host Carol Morgan on the Atlanta Real Estate Forum Radio podcast to explain what’s often misunderstood about housing today, drawing on economics, demographics and long-term planning rather than headline-driven narratives.
Debunking Housing Myths
Despite frequent media narratives, institutional investors are not driving up housing costs. Even the largest publicly traded single-family rental developers control only a sliver of the overall market. In fact, they represent well under 1% of the nation’s roughly 18 million single-family rental homes.
“They cannot affect the market in that way. It’s nothing like a monopoly,” Byce said. “They’re improving the houses that people are living in, and coming out of the downturn, they renovated homes that were in severe disrepair back in 2011 and 2012.”
Affordability challenges follow a simple equation: supply and demand. After more than a decade of underbuilding, the U.S. is short an estimated 5 million homes. When demand consistently outpaces supply, prices rise.
Byce also addressed another common misconception — that builders are driving prices higher out of greed. Home builders historically operate on thin margins, averaging roughly 8% to 10% net profit over decades. Public confusion often stems from conflating gross margins with net returns. Land prices, development costs, municipal fees and the cost of capital all weigh heavily on final home prices. Execution efficiency can help, but it cannot offset structural cost increases, particularly those imposed by lengthy entitlement processes and rising local government fees.
The Rise of Build-to-Rent
ResiBuilt’s early focus on build-to-rent was not accidental. Byce explains that the firm began studying millennial housing behavior well before its 2018 launch and concluded that younger households were not rejecting homeownership outright — they were rejecting outdated housing products.
Millennials moved from amenity-rich student housing into high-end multifamily communities, only to experience a sharp drop-off in quality when transitioning to traditional starter homes. As a result, many simply opted out. Build-to-rent fills that gap by offering new, finished homes that deliver modern features without the maintenance responsibilities of homeownership.
Instead of a millennial-dominated renter base, early communities quickly filled with two core groups: millennials and “young empty nesters,” each accounting for roughly 40% of residents. For empty nesters, build-to-rent offers a lock-and-leave lifestyle without sacrificing space, privacy or the ability to remain in family-oriented environments. Byce points out that the overlap in expectations between renters and buyers is far greater than many assume.
Renting and Buying: More Alike than Different
As build-to-rent expanded nationally, some operators attempted to cut costs to lower rents. ResiBuilt took the opposite approach.
Renters notice quality just as acutely as buyers. From stainless steel appliances to tile backsplashes and upgraded countertops, renters expect durable, high-quality finishes. The modest monthly savings achieved by cutting finishes rarely justify higher long-term maintenance and turnover costs.
ResiBuilt has selectively expanded into for-sale housing, which now accounts for about 10% of its annual production. Byce describes the transition as seamless, noting that the company has always designed homes as if they were intended for ownership.
“Think about cars, right? So you want to go and buy a car. What do you do? First, you choose the car you want to buy, right?” Byce said. “Then they give you the option. ‘Do you want to put a lot of money down and get a loan on this car, ‘or ‘Do you want to lease this car and just pay a monthly payment?’ We kind of thought of it the same way. We want to give people what they expect to buy, but with an option to lease it.”
The Long View of Housing Trends
Investor appetite for build-to-rent has cooled over the past two years, driven by higher interest rates and strong returns in competing asset classes such as equities. That slowdown has made new deals harder to pencil, even as demand for rental homes remains strong.
Still, ResiBuilt continues to plan years ahead. Homebuilding is not reactive and takes time to develop into fruition. Communities delivering in 2028, for example, are being entitled and purchased today. That long lead time creates risk when builders pull back simultaneously. As land purchases slow and fewer projects break ground, the industry may be setting the stage for an even tighter supply environment three years down the road that could push prices higher regardless of interest rate relief.
What is the solution? A sharp correction in home prices would erode household wealth for millions of homeowners and risk triggering a broader recession that far outweighs the benefits.
Instead, Byce points to a more sustainable path: price stability combined with wage growth and lower interest rates. Even modest improvements on both fronts could meaningfully improve affordability without destabilizing the market.
What’s Next for the Housing Industry
Byce is cautiously optimistic about the near-term outlook. He expects lower rates to unlock pent-up demand and fuel a stronger-than-expected spring housing season. Longer term, he remains confident that 2027 and 2028 will be strong years for housing, driven by demographics and an ongoing supply shortage.
Opportunities are increasingly emerging in secondary and tertiary markets, including fast-growing exurbs around Atlanta and metros such as Savannah, Ga., Greenville, S.C., Huntsville, Ala., and Asheville, N.C. These locations boast quality of life, schools and relative affordability that continue to attract buyers and renters alike.
Tune in to the full episode for deeper insight into housing affordability, build-to-rent misconceptions, and how builders and investors are navigating an evolving residential market. Learn more about ResiBuilt at https://ResiBuilt.com/.
About ResiBuilt
Founded in 2018, ResiBuilt is an award-winning residential homebuilder providing land development, build-to-rent, fee building, and residential construction services. With a focus on quality construction, operational efficiency, and strong partnerships, ResiBuilt delivers thoughtfully designed communities that meet the evolving needs of today’s renters and investors. Learn more at resibuilt.com.
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About Atlanta Real Estate Forum Radio
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