Significant Increases in Major Metros

Recent data highlights remarkable growth in the build-to-rent (BTR) sector, with Dallas leading the charge by adding 3,197 new units. Atlanta followed closely behind with 3,035 new units, experiencing a notable 15% increase from the previous year. Meanwhile, Houston’s output surged to 2,505 completed homes across 16 developments, marking a staggering 187% year-over-year increase.

According to the report, these metropolitan areas are emerging as significant centers for BTR construction, coinciding with substantial population growth across the nation.

Factors Driving Demand for Build-to-Rent

The influx of demand for BTR developments can be attributed to a mix of social dynamics and economic conditions. An observable shift has occurred, with both millennials and retirees opting for spaces that offer more room and modern amenities.

As outlined in the report, developers are now under pressure to respond to this escalating demand. Factors such as increasing mortgage rates and escalating housing prices have pushed many potential homebuyers towards renting, while the remote work trend has made the appeal of suburban living stronger. This shift has fueled competition for homes featuring private yards and community-oriented spaces.

Emergence of Mid-Sized Markets

While larger cities dominate the BTR conversation, smaller markets are also making significant strides. Six mid-sized metros have entered the “1,000+ club,” which includes:

• Charlotte, N.C. – 1,415 units
• Jacksonville, Fla. – 1,201 units
• Huntsville, Ala. – 1,098 units
• Columbus, Ohio – 1,018 units
• Tampa, Fla. – 1,005 units

Huntsville stands out with an impressive 255% increase in BTR completions year-over-year, signaling robust growth potential in smaller markets.

Future Prospects for the Build-to-Rent Market

Current data suggests that approximately 110,000 single-family rental homes are in various stages of construction or planning across the United States, as highlighted by Point2Homes. Phoenix is notably in the lead with a pipeline of 13,010 homes, followed by Dallas (8,450) and Atlanta (6,644).

The BTR market has undergone a significant transformation in recent years. From 2019 to 2024, the national inventory of BTR properties more than doubled, climbing from 107,000 units to 217,161 units. Over this span, Dallas added more than 10,000 units, bringing its total to 14,682, while Phoenix contributed 12,702 homes. Atlanta exhibited remarkable growth, increasing from just 547 homes in 2019 to over 8,100 by 2024—an astounding fifteenfold increase.