Build-to-Rent Boom: 110K+ Single-Family Rentals Underway

The build-to-rent (BTR) market is experiencing unprecedented growth, with over 110K single-family rental homes currently under construction across the US, according to Point2Homes. As homeownership remains out of reach for many due to high mortgage rates and rising home prices, developers are ramping up efforts to meet surging demand for rental homes that offer more space and premium amenities.

Among the states leading this boom:

• Texas dominates, with nearly 22K units under development.
• Arizona and Florida follow closely, with nearly 14K units each.
• North Carolina and Georgia round out the top five, with over 12K and 10K units respectively.

This wave of new construction will increase the total BTR inventory by over 50% nationwide. In some states, such as North Carolina (152%) and Nebraska (255%), the rental supply will more than double once these units hit the market.

Smaller States See Big Rental Supply Growth

While Texas, Arizona, and Florida dominate in sheer numbers, several smaller states are experiencing dramatic percentage increases in single-family rental (SFR) inventory. In Nebraska, Rhode Island, Delaware, New Hampshire, North Carolina, New Mexico, and Virginia, the number of rental homes in development will more than double the existing inventory, with Nebraska leading at a 255% increase.

Although these states have smaller rental markets, the sharp growth underscores a nationwide expansion of the build-to-rent (BTR) model. Developers are recognizing demand beyond major metros and moving into emerging markets with less restrictive land costs and zoning hurdles.

This shift benefits renters in multiple ways:

• Greater affordability: BTR homes provide a cost-effective alternative to homeownership, especially in markets where high mortgage rates and rising home prices put buying out of reach.
• Increased flexibility: Many BTR residents now rent by choice, preferring the lifestyle benefits of renting without the long-term commitment of ownership. According to Yardi Matrix, 36% of BTR renters in 2024 identify as “renters by preference,” up from 27% in 2023.
• More space & better amenities: As demand for suburban living grows, BTR communities are offering larger homes with premium features like private yards, garages, and access to resort-style amenities.

With urban housing costs surging and suburban expansion unlocking new opportunities, the BTR sector is reshaping rental housing across the country—even in states where large-scale rental development was previously uncommon.

Phoenix: The Undisputed BTR Leader

While Texas leads overall BTR development, Phoenix emerges as the top metro, with 13.1K SFRs under construction—more than any other US city and surpassing most states’ total BTR pipelines. Dallas follows with 8.47K units, cementing its status as a major hub for SFR growth.

Phoenix has long been a hotbed for real estate development, thanks to rapid population growth, a strong job market, and relatively lower land costs than coastal metros. The city is home to four Fortune 500 companies, and its key industries—including real estate, finance, insurance, and manufacturing—continue to fuel demand for high-quality housing.

A key driver of the Phoenix BTR boom is its embrace of sustainable development. The metro is investing in green infrastructure, energy-efficient buildings, and water conservation efforts, making it a magnet for environmentally conscious businesses and renters looking for modern, efficient housing. Developers are responding by constructing BTR communities with high-end, energy-efficient designs that appeal to Millennials, Gen Z, and remote workers who prioritize sustainability and affordability.

Dallas: Texas’ BTR Powerhouse

Dallas is not far behind, with 8.47K SFRs in development. Given Texas’ dominance in BTR construction, it’s no surprise that DFW is a key player in the space. With no state income tax, a business-friendly climate, and a thriving job market, the region attracts a steady influx of new residents, creating sustained demand for affordable, flexible rental options.

Several factors contribute to Dallas’ strong BTR pipeline:

• Corporate Relocations & Job Growth: Major companies such as Tesla (TSLA), Oracle (ORCL), and Caterpillar (CAT) expanded into Texas, driving employment growth and increasing housing demand.
• Diverse Economy: From tech and finance to healthcare and logistics, Dallas’ economic diversity ensures a steady stream of renters, including young professionals and families.
• Suburban Expansion: Developers are capitalizing on available land in the metro’s outer areas, allowing them to build spacious, amenity-rich BTR communities at price points significantly lower than urban high-rises.

Other Key Metros Gaining Traction

Beyond Phoenix and Dallas, several other metros are emerging as BTR hotspots, each with thousands of SFRs under construction:

• Atlanta (6.89K units): With strong job growth and steady migration, Atlanta remains a top destination for renters looking for affordability and opportunity.
• Houston (4.61K units): Texas’ largest metro continues to attract families and professionals with its thriving energy sector and lower cost of living.
• Austin (4.31K units): Known for its booming tech scene and startup culture, Austin is seeing strong demand for modern, flexible rental options.
• Charlotte & Raleigh (5.37K & 3.12K units): North Carolina is emerging as a BTR powerhouse, with an expected 152% increase in rental inventory.
• Orlando (3.52K units): Fueled by tourism, hospitality, and tech sector growth, Orlando’s rental market remains one of the strongest in Florida.

Why It Matters: The Growing Appeal of BTR

The demand for SFRs has been fueled by multiple factors:

• Affordability concerns: With high mortgage rates and soaring home prices, renting is often $1K cheaper per month than homeownership.
• Changing renter preferences: A growing number of households, especially Millennials and Gen Z, prefer renting due to flexibility, mobility, and modern amenities.
• Remote work and suburban expansion: As urban living costs rise, many renters are choosing spacious suburban homes while staying connected to major employment hubs.

According to Yardi Matrix, 36% of BTR renters in 2024 choose to rent by preference, up from 27% in 2023.

What’s Next for the BTR Market?

While BTR construction starts peaked in 2023, recent reports indicate a slight slowdown due to higher material and labor costs, rising interest rates, and oversupply concerns. However, the strong demand for rental homes and the record number of units currently under construction suggests that the BTR sector will remain a key player in the US housing market for years to come.

With thousands of new homes set to hit the market in 2025 and beyond, renters will soon have more options than ever for high-quality, single-family living without the burden of homeownership.