JPMorgan, Georgia Capital Target Built-to-Rent Development

A real estate venture is set to bring single-family rentals to Atlanta and the Southeast.

JPMorgan Asset Management and Atlanta-based real estate firm Georgia Capital have partnered to establish Laseter Development Group, a built-to-rent venture, the Atlanta Business Chronicle reported. Each will hold a 50 percent stake in the company, but financial details weren’t disclosed.

Paran Homes, Georgia Capital’s Roswell-based homebuilding affiliate, plans to start construction on Laseter’s first two projects this year: 165 homes in suburban Atlanta, and 126 in Nashville, according to a news release.

The region’s expanding built-to-rent market ranked third in the nation for housing completions in 2023 with 1,872, according to RentCafe. JPMorgan Asset Management’s Chad Tredway attributed the sector’s growth to changing demographics, such as millennials seeking more space, and economic factors like record-high housing prices.

JPMorgan Asset Management’s previous investments in the Atlanta-area rental market include a $1 billion joint venture with Haven Realty Capital in 2022, which focused on acquiring and developing single-family rentals. That effort included the acquisition of 250 homes across three metro Atlanta communities.

Demand for single-family rental housing has gained traction in recent years, particularly in the wake of the 2008 financial crisis and the pandemic.

Rising home prices and financial barriers have made homeownership difficult for many buyers. As a result, these build-to-rent communities provide an alternative for families and professionals seeking space and privacy without the long-term mortgage commitment.

While average rents have increased by 34 percent since the start of the pandemic, the market has begun to see slight improvements, particularly as wages have started to grow faster than housing costs.

The market has begun to see slight improvements, particularly as wages have started to grow faster than housing costs. Average rents have increased by 34 percent since the start of the pandemic.

The Atlanta metro was among the five most-valuable housing markets last year, according to Redfin.

— Andrew Terrell