- Nearly 90K BTR units are under construction across the US, with over 56K units in the Sun Belt region alone.
- BTR housing caters to renters unable to buy homes, offering single-family-style living with community amenities.
- High mortgage rates and limited housing inventory make BTR an attractive option for both renters and developers.
- The South and West dominate BTR construction, with significant projects also underway in Texas, Arizona, Florida, Georgia, and North Carolina.
Build-to-rent (BTR) housing is rapidly expanding, with nearly 90K units under construction nationwide, many concentrated in the US South and West.
According to RealPage, BTR properties are gaining popularity as a practical solution for renters who need help achieving homeownership due to tight housing inventory and volatile mortgage rates.
Big Picture Outlook
As of November 2024, there are roughly 90K BTR units under construction across the US, including properties in lease-up phases, according to RealPage Market Analytics.
BTR developments differ from traditional single-family rentals in that they are intentionally built on land for rental purposes. These homes range from detached single-family houses to townhouses and duplexes, often featuring shared amenities.
Regional Breakdown
The South leads the nation in BTR construction, with nearly 57K units underway as of November, followed by the West with 23.1K units.
- South: Expects to see nearly 57K units by 2Q27, led by states like Texas, Florida, and Georgia.
- West: Anticipates 23.12K units by 1Q27, with strong activity in Arizona.
- Midwest: Plans for 7.96K units through late 2027.
- Northeast: Trails with just 1.78K units expected to be completed over the next 21 months.
The Sun Belt’s dominance in BTR construction reflects the region’s availability of land and demand for single-family living with community amenities.
RealPage is also tracking an additional 10K planned BTR units nationwide, though these projects are subject to shifts in the economic environment.
Get Smarter about what matters in CRE
Stay ahead of trends in commercial real estate with CRE Daily – the free newsletter delivering everything you need to start your day in just 5-minutes
Subscribe
Looking Ahead
The sector’s growth remains strong despite mortgage rates hovering between 6% and 8%—well above the 10-year average of 4.47%.
Headwinds such as persistent inflation, potential tariffs, and supply-chain disruptions may challenge the sector.
However, the enduring demand for affordable, single-family-style rentals positions BTR as a viable solution for renters and a profitable venture for developers.
