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As homeownership becomes increasingly out of reach for many Americans, the build-to-rent (BTR) housing market is booming like never before.
In 2024, developers completed a record 39,000 single-family rental homes, marking a 15.5 percent increase from the previous year, according to a Point2Homes analysis of Yardi Matrix data. That momentum shows no signs of slowing with nearly 110,000 more units currently underway.
The surge in BTR development is being fueled by a mix of economic pressures and shifting lifestyle preferences. Soaring home prices, elevated mortgage rates and the lasting effects of remote and hybrid work, have changed what many renters — especially millennials — are looking for in a home.
“Single-family rentals have seen significant growth in recent years,” Doug Ressler, senior analyst and business intelligence manager at Yardi Matrix, told Inman. “Currently, they represent about 8 percent to 10 percent of new single-family home starts. This is a substantial increase from just a few years ago when they made up only 3 percent of new builds. This shift reflects a growing demand for rental housing amid challenges like high mortgage rates and housing affordability.”
While mortgage rates on 30-year fixed-rate conforming loans dipped to 6.48 percent just last week, they still remain well above pandemic-era lows.
Single-family rentals also offer space and independence of homeownership without the steep financial commitment, making them an increasingly attractive option for those priced out of buying.
“Renting provides flexibility that homeownership does not,” Ressler said. “People can move more easily for job opportunities or personal reasons without the long-term commitment of owning a home.”
Regionally, the South continues to lead the BTR boom, thanks to abundant land and faster permitting, but growth is spreading quickly to other areas: Georgia, the Carolinas, Florida and even California. The most notable gains are in two of those areas, Georgia and Florida, as well as Arizona and Texas.
Texas topped the list in 2024 with 6,994 new single-family rental homes completed, followed by Florida with 5,379, Arizona with 4,812 and Georgia with 4,095.
Phoenix stood out as a top-performing metro across the board, adding 4,460 new homes — an 18 percent increase from 2023. The city also added 85,000 residents in the same period, reinforcing the strong link between population growth and BTR expansion.
The wave of new construction observed is closely tied with broader population shifts. Between 2023 and 2024, nine states –Arizona, California, Florida, Georgia, New York, New Jersey, North Carolina, Texas and Washington — each gained over 100,000 people. Texas saw the largest increase of nearly 563,000 new residents.
As more people relocate from dense urban cores in search of more space and affordability, developers are building new rental communities in emerging suburban areas. According to Kessler, these new BTR communities offer modern home amenities, including pools, fitness centers and playgrounds — all features that enhance the living experience without the burden of homeownership.
Ressler also emphasized that BTR and single-family communities are becoming economic bright spots for other reasons.
“SFR and BTR have also become attractive investment opportunities. Institutional investors have poured significant capital into these sectors, recognizing their potential for stable returns and growth,” Ressler said. “These factors contribute to the resilience and growth of SFR and BTR in the current economic climate.”
