The Garage Premium in Build-to-Rent Townhomes
Walk through almost any American neighborhood and you’ll notice something interesting: Many garages aren’t filled with cars—they’re filled with everything else that makes up our daily lives. Whether it’s because we’re collectors, hobbyists, or simply like having extra storage, one thing is clear:
Americans love their stuff.
For build-to-rent developers and investors, that’s more than an interesting observation—it’s a business opportunity.
A recent study from Yardi Matrix and Hunter Housing Economics analyzed more than 1,500 rental townhome communities representing over 238,000 units to answer a question many developers have only loosely considered:
What is a garage really worth?
The answer surprised even seasoned industry professionals.
More Than a Place to Park
According to the research, a one-car garage generated approximately $1,680–$2,580 in additional annual rent, while a two-car garage produced $2,940–$4,440 per year in additional rental income. At a 6% exit cap rate, that translates to approximately $37,850 in additional implied value per unit—often exceeding the additional construction cost.
As the authors conclude, ”The headline findings are unambiguous.” Garages are proving to be much more than an amenity. They’re a measurable value driver for modern build-to-rent communities.
If you’d like to dive deeper into the research, you can read Brad Hunter’s full white paper and article here.
You can also watch Brad Hunter discuss the findings in this video:
The Hidden Value Isn’t Just Rent
Here’s where the research becomes even more compelling.
Communities with garages don’t simply collect higher rents—they tend to perform better operationally. Residents with garages move less frequently, resulting in lower turnover, reduced make-ready expenses, fewer leasing commissions, and less vacancy loss. The study estimates these operational advantages contribute an additional $350–$650 per unit annually in effective NOI.
In other words, the garage continues producing value long after the lease is signed.
Auben Sees It Every Day
The national research aligns with what our leasing teams experience across our portfolio.
Prospective residents regularly ask one of the first questions before scheduling a tour:
“Does it have a garage?”
Storage has become one of today’s most desired amenities. Whether it’s seasonal decorations, lawn equipment, bicycles, strollers, or simply a place to keep life’s extras, residents consistently place a premium on having additional enclosed space.
“We’ve found that garages do more than provide parking—they give residents the extra storage they’re looking for. The added space is something people are willing to pay for.” -Auben Team Member
These conversations reinforce something the data confirms: garages aren’t just appreciated—they influence leasing decisions.
Cedar Creek Put the Theory Into Practice
At Auben Realty, we’ve had the opportunity to see these findings play out in real time.
During the lease-up of Cedar Creek, homes with attached garages consistently outperformed nearby comparable communities by supporting stronger rental rates while maintaining excellent leasing momentum.
Cedar Creek Results
- Average Rent: $2150
- Comparable Communities: $1950
- Monthly Rent Premium: $250
- Lease-Up Timeline:8 months
- Occupancy: 100%
Those results mirror the national research and reinforce what we’ve experienced firsthand: residents recognize the value of garages and are willing to pay for them.
A Down Side… The downsides point to dense urban markets and legacy stock-heavy markets where transit and urban density limit the need for garages or “no garage” is often well-established. These markets have the smallest garage premium (4%-7%) as compared to markets where car dependency is great, demand for enclosed parking, or markets accustomed to garage living have garage premiums of (8-18%).
A Different Way to Think About Garages
Developers have traditionally viewed garages as another line item in the construction budget.
But perhaps that’s the wrong way to look at them.
National research, combined with our own experience leasing build-to-rent communities, suggests that garages do far more than provide a place to park a vehicle. They create additional storage, support today’s renter lifestyle, differentiate communities from nearby competition, and contribute to stronger financial performance.
That doesn’t mean every market is the same.
In dense urban environments and legacy markets where public transit is widely available—or where older housing stock has historically been built without garages—the premium tends to be much smaller. In these locations, the value of enclosed parking is often outweighed by walkability and established housing patterns, resulting in garage premiums of approximately 4%–7%. By contrast, suburban markets where residents rely heavily on personal vehicles and have come to expect attached garages routinely see premiums ranging from 8%–18%.
For Auben’s markets across the Southeast, that distinction is especially meaningful. Many of the communities we serve are suburban, vehicle-dependent, and attract residents who value both convenience and additional storage. Our leasing teams hear it every day, and our experience at Cedar Creek reinforces what the national research demonstrates: garages consistently help homes stand out in the marketplace.
The garage isn’t simply another amenity to list in a marketing brochure. It’s becoming a structural driver of rental income, resident retention, and long-term asset value. Developers who evaluate garages solely as a construction expense may be overlooking one of the most impactful investments they can make in a build-to-rent community.
Sometimes the highest return on investment isn’t found inside the home.
It’s waiting just beyond the garage door.
This week’s blog post comes to us from Ivan Jenkins!
