New homes for renters
New homes for renters
KASA was founded by Klee Irwin, who also founder of Irwin Naturals, an award-winning CPG company whose products can be found in over 100,000 stores across North America.
Klee believes that KASA can be just one solution to the ever-growing shortage of housing for Americans, which in 2021 was estimated to be over 5-million homes by Realtor.com. Due to the shortage that has been exacerbated by the pandemic, prices for new and existing homes have risen at a record pace. The nation’s median existing-home price increased 30% from 2020 to 2022 to an unprecedented high of $428,700 in the first quarter of 2022, according to the National Association of Realtors, which has made the affordability crisis even worse. When combined with the recent dramatic increase in mortgage rates, many homebuyers have been priced out of the market and will be forced to continue to rent. It is likely that a significant number of these renters will seek single family homes over traditional apartments as they want more space.
KASA is positioned to take advantage of this shift in the market and develop livable and quality single-family rental communities, while traditional homebuilders pull back as their new homes sales slow and other conventional SFR operators struggle to deliver units. KASA communities will provide the opportunity for these credit-worthy tenants to reside in rental communities designed to live comfortably like homes and with apartment style amenities. These communities have been designed to maximize both the living experience and generate robust rental income streams. Spacious floor plans, better construction finishes will likely lead to greater tenant satisfaction, less turnover, and lower vacancies. KASA communities are expected to outperform traditional construction in any economic environment.
Builders slowed construction
The supply shortage became especially acute in the past year. Builders slowed construction in many regions last spring and delayed land purchases due to uncertainty surrounding the Covid-19 pandemic. In addition, low mortgage interest rates and an increase in remote work led to a surge in demand for suburban living and single-family housing. In addition, many homeowners delayed or canceled plans to list their homes for sale which led to record low inventory on the re-sale market.
Millennial home buyers are entering the market
Further compounding the issue has been the lack of new housing construction in the past 20 years, which has fallen 5.5 million units short of long-term historical levels, according to a new National Association of Realtors report—just as millennial home buyers are entering the market looking to purchase their first home; but in the meantime being forced to look for rental homes.