The Austin-based development firm Good + West Residential says it will build four rental home communities in Texas over the next four years, including projects in Dallas-Fort Worth and Austin. Development costs are anticipated to total $400 million.
The company has two projects underway in DFW, one in Denton and another in Fort Worth, under its Perch brand of rental homes. The communities include a mix of attached and detached one, two, and three-bedroom homes, according to The Dallas Morning News.
The firm is led by Dallas native Elizabeth Good and David West, who started the company in 2019. Since the founding, they have developed apartment complexes — The Langford and 4600 Ross — in Dallas but say they are shifting to rental homes due to the increase in demand.
“We felt that build-to-rent was a segment of the market that was underserved in Texas,” Good told the Dallas Morning News. “We think it’s just in its infancy in the Texas markets and decided that with the capital behind it, it would be a good focus for us.”
Several companies are entering Texas’ build-to-rent market, including California’s Banyan Residential and Dallas-based Invitation Homes, which launched a $750 million joint venture to develop high-end build-to-rent communities in North Texas, according to The Real Deal.
Good + West Residential currently has more than $150 million in construction underway in partnership with a family office in Dallas. The founders say they have raised enough capital to work on three to five projects per year.
Although the company expects to expand beyond DFW and Austin, it is currently focused on these two markets.
Good + West is expected to start construction on a 319-unit project in south Fort Worth called Perch Chisholm Trail in the spring. Good says the first unit should be ready for residents by the summer of 2024.
The firm’s other project, Perch Denton, began construction in April 2022. The project will include 195 cottage-style units and is set to begin pre-leasing in the next 60 days, according to the Dallas Morning News. Construction is scheduled to be completed by the end of the year.
“We see a lot of room to run for this product type. The fact that interest rates have gone up only makes it a lot harder for people to buy homes,” West said. “There’s also a mentality shift away from homeownership with younger people, who are maybe wanting more flexibility.”
Good said the company’s strategy in both markets is to follow the path of growth and find locations close to jobs, retail, good schools, and new subdivisions. They are currently searching for more sites in North Texas.
Good says the rental rates will be comparable to the newest properties in the area. The communities will also include a host of amenities not often seen in the build-to-rent sector, including fitness centers, pools, dog parks, and electric vehicle charging outlets, according to the Dallas Morning News.
“We’re really in the details when it comes to design and architecture and look and feel,” West said. “We try to position our brand at the top of the market for build-to-rent and offer something really appealing and pleasant for renters.”