This year marks the 10th anniversary of TRICOR, an opportune moment to reflect on the transformation within the single-family rental (SFR) sector, particularly in Arizona. Over the past decade, the SFR market has evolved from a post-crisis alternative to a robust component of the national and state housing landscape.
Evolution of the SFR Market
When TRICOR began in 2014, the appeal of SFR was growing, driven by a shift in consumer behavior following the financial crisis. Many sought the privacy and space of single-family homes without the financial burden of ownership, a trend particularly strong in Arizona. Initially, the industry capitalized on this demand by turning foreclosed homes into rentals. As the market matured, it shifted towards constructing homes specifically designed for rental purposes, mirroring broader national trends.
Arizona’s Dynamic Real Estate Market
In Arizona, where TRICOR is headquartered, the SFR sector’s growth has been significant. The Phoenix metro area has been a hotspot for SFR development. According to the Arizona Regional Multiple Listing Service, the median sale price of homes in Phoenix has risen over 150% since 2014, fueled by strong population growth and limited housing supply. This surge in home prices has made homeownership less accessible, boosting the demand for high-quality rentals. TRICOR has responded by not only meeting this increased demand but also enhancing living standards through sustainable and energy-efficient designs.
Driving Factors and Future Trends
The growth of the SFR sector in Arizona is propelled by several factors. Economic fluctuations and changing demographics, such as millennials delaying homeownership, have bolstered the demand for flexible living arrangements. The Urban Institute projects that millennials will form 20 million new households by 2025, many opting for rental housing. This demographic shift suggests a continued robust demand for SFR, both nationally and in Arizona.
Looking Ahead
As we celebrate this milestone, we are excited about the future. The ongoing economic uncertainties and evolving lifestyle preferences likely mean strong rental demand will continue. TRICOR is well-positioned to meet this demand, thanks to our proven track record and ongoing commitment to innovation and quality.
Reflecting on a decade of achievements, I am proud of TRICOR’s growth and the role we play in transforming the SFR market. Our dedication to creating homes that reflect pride-of-rentership and our focus on sustainability, technology integration and community engagement continues to drive our success and set us apart in the industry. As we look forward, we remain dedicated to advancing the sector and enriching the lives of our tenants through high-quality, sustainable living options.
Craig Lonsdale is founder and CEO of TRICOR. TRICOR was founded in 2014 and has grown to become a leader in the Arizona rental home construction sector, known for innovative and sustainable building practices that have transformed rental housing options across the state.
