Why New Construction Single-Family Homes Are the Best Play in Today’s
If you’ve been around real estate investing, you’ve probably heard about the BRRRR strategy—Buy, Rehab, Rent, Refinance, Repeat. It’s been a staple on BiggerPockets for years, helping investors recycle capital and build portfolios.
But here’s the problem: it’s getting harder and harder to find good renovation deals.
I’ve been in the Columbus, Ohio, market for years, and I’ve seen firsthand why traditional rehabs aren’t making sense anymore. Homes are old, full of costly surprises (think cast iron plumbing, knob-and-tube wiring, and deteriorating foundations), and renovations are constantly going over budget and taking too long.
So what’s the solution? New construction single-family homes.
Why Building New Homes Is the Best Play Right Now
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Aging Housing Stock Is a Nightmare for Investors
- Many homes in urban cores were built in the early 1900s.
- Renovations are expensive and unpredictable.
- Contractors aren’t always equipped to deal with outdated materials.
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Limited Distressed Inventory
- The days of picking up cheap, dilapidated houses are fading.
- Many older homes are too far gone—so much so that demolition is often the best option.
- As a former demolition contractor, I’ve seen this firsthand.
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Single-Family Homes Have Strong Market Demand
- They make up only 4% of housing stock in downtown Columbus.
- Buyers and renters want new homes—modern finishes, open layouts, and energy efficiency.
- Lenders love them, too. There are comparable sales (comps) to support valuations, unlike multi-family new builds, which often struggle with appraisals.
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Urban Land Prices Are Still Reasonable
- In key Columbus ZIP codes (43206, 43205, 43207, 43223, 43222), you can still buy infill lots for $40K–$60K.
- That’s on par with suburban lot prices—but in locations with much higher appreciation potential.
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Easier Zoning & Faster Approvals
- Columbus allows single-family homes by-right in R1, R2, and R3 zoning.
- Triplexes and other multi-family properties often require rezoning (R4), adding time and costs.
- Infill single-family homes fit the zoning codes and neighborhood preferences.
Build-to-Rent vs. Spec Building—Two Winning Strategies
If you’re considering new construction, you have two main options:
- Build-to-Rent (BTR): Keep the property, generate cash flow, and benefit from long-term appreciation.
- Spec Building: Sell the property for a profit—especially in high-demand urban areas with limited inventory.
Both strategies beat BRRRR in today’s market. Instead of overpaying for a century-old home with major rehab risks, you can build a brand-new house that meets modern demand and commands top-dollar rents or sales prices.
Final Thoughts
The game is changing. BRRRR made sense when there were plenty of distressed properties, but in many markets, it’s no longer the best move. New construction single-family homes provide a clear path to profit, stability, and long-term value.
If you’re looking to build in Columbus, my team specializes in urban infill new construction. Whether you want to build to rent or sell for a profit, we’ve got the process dialed in.
📩 Let’s connect if you want to explore opportunities or click in HERE
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