Build-to-Rent Housing: Navigating the Surge of Purpose-Built Rental Communities

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The Evolution and Growth of Build-to-Rent Housing Developments

Build-to-rent (BTR) housing developments have rapidly transformed from a niche segment to a mainstream solution for the U.S. housing market’s persistent supply and affordability challenges. These purpose-built communities offer professionally managed, single-family homes or townhouses designed specifically for renters rather than buyers. This model has attracted both residents seeking more space and flexibility, and investors searching for stable, long-term returns-fueling a surge in new construction and market innovation over the past five years.

Understanding the Build-to-Rent Model

The build-to-rent model centers on constructing entire communities of single-family homes or townhomes with the intention of leasing, not selling, the units. Unlike traditional for-sale housing, BTR properties are typically managed by specialized firms, offering amenities like on-site maintenance, community centers, green spaces, and in some cases, smart home technology. The goal is to deliver a rental experience that rivals or surpasses apartment living, but with the added privacy and space of a detached or semi-detached home.

For residents, this means access to modern, move-in-ready homes in professionally managed neighborhoods, often with flexible lease terms and lower upfront costs compared to homeownership. For investors, BTR developments can provide more predictable cash flow and operational efficiency, especially when built at scale. According to recent market data, BTR properties have become an important part of the national housing supply, particularly as affordability pressures put homeownership out of reach for many Americans [4] .

Recent Growth and Market Performance

The growth trajectory of BTR housing has been remarkable. In 2024, annual U.S. BTR deliveries reached 39,000 single-family homes , marking a 455% increase from 2019 . The market continues to expand, with more than 90,000 units in the development pipeline across the 100 largest metros as of mid-2025 [2] . While the Sunbelt remains the epicenter-cities like Phoenix, Dallas-Fort Worth, Houston, and Atlanta lead in both existing inventory and new projects-BTR communities are increasingly appearing in secondary markets such as Wilmington, Des Moines, and Chattanooga.

Despite some moderation from the post-pandemic boom, BTR remains resilient. In Q2 2024, BTR properties posted a 1.5% year-over-year rent growth , outpacing the 0.3% increase seen in traditional multifamily rentals. Vacancy rates have stabilized at around 6.9% nationwide, with rents averaging $2,181 per unit , although regional variations are significant. The Midwest, for example, experienced a robust 4.2% YOY rent growth in early 2025, while the Southwest saw rents decline by 2.9% YOY due to a surge of new inventory [1] [5] .

Why Build-to-Rent Is Gaining Momentum

Several factors contribute to the rise of BTR housing developments:

• Housing Shortage and Affordability: The U.S. faces a deficit of nearly 3.9 million housing units, making rental options essential for those unable to purchase homes [1] .
• Changing Demographics: Millennials and Gen Z increasingly value flexibility and amenity-rich living, while families and downsizers seek the space of single-family homes without long-term ownership commitments [4] .
• Institutional Investment: Large financial firms and real estate companies have recognized the stable returns offered by BTR, channeling billions of dollars into new projects [2] .

Additionally, BTR can help address gaps in traditional rental markets, offering alternatives for those who want more space, private yards, and community amenities often missing from apartments.

Types of Build-to-Rent Communities

BTR developments are no longer limited to a single model. The sector now includes:

• Detached single-family homes
• Townhomes and rowhouses
• Horizontal apartments or cottage-style clusters
• Mixed-product communities blending several housing styles

This diversity allows BTR projects to serve varying renter profiles-from young professionals to growing families to retirees-while also enabling flexibility in design and density to match local zoning and demand.

Accessing Build-to-Rent Opportunities

For renters , finding a BTR home typically involves searching through established apartment listing platforms or directly contacting property management firms specializing in single-family rentals. Many large BTR operators maintain their own websites, providing virtual tours, online leasing, and detailed amenity information. If you are looking to move into a build-to-rent community:

1. Search popular real estate websites (such as Zillow, Apartments.com, or Realtor.com) for “single-family rentals” or “build-to-rent homes” in your target area.
2. Contact reputable property management companies that specialize in BTR communities. Search terms like “build-to-rent property managers” or “single-family rental communities” can be helpful.
3. Check local real estate agent directories or consult with a licensed agent knowledgeable about the BTR market in your region.

For investors interested in BTR, consider:

1. Researching current and planned BTR projects in your target market by reviewing public records, industry reports, and trade publications.
2. Contacting established BTR developers or institutional investment firms with proven track records.
3. Joining real estate investment groups or attending industry conferences focused on rental housing trends and opportunities.

While some BTR projects are open to individual investors, many are structured as institutional-grade assets. You may need to meet minimum investment thresholds or partner with a registered firm. Always conduct due diligence and consult with a real estate attorney or financial advisor before investing.

Challenges and Considerations

Despite their advantages, BTR developments face several headwinds:

• Financing and Interest Rates: Higher borrowing costs have moderated the pace of new development, as some projects become less profitable [3] .
• Market Saturation: Certain regions, such as the Southwest, are experiencing oversupply, leading to lower rents and higher vacancy rates [5] .
• Regulatory Barriers: Zoning laws and community resistance can slow new BTR development in some jurisdictions.
• Operational Complexity: Managing large-scale single-family rental portfolios can require significant expertise and technology investment.

For renters, it’s important to compare lease terms, amenities, and pricing between BTR and traditional rental options. For investors, careful market analysis and diversification are key to managing risk as the sector matures.

Regional Trends and Market Outlook

The Sunbelt-including Phoenix, Dallas-Fort Worth, and Atlanta-remains the driving force behind BTR growth, thanks to strong population gains, affordable land, and robust job markets. However, the diversification of BTR into secondary and tertiary metros is expected to continue, opening new opportunities for both renters and investors [2] .

In the Midwest, limited new supply has kept rent growth strong, while the Southwest may see further adjustments as more units come online. Nationally, BTR is expected to maintain an elevated share of single-family housing starts, accounting for over 8% of all new construction in 2024 [4] .

Practical Steps for Renters and Investors

If you are considering a move into a BTR home, follow these steps for a smoother process:

1. Identify your preferred metro areas and neighborhoods. Research local BTR supply and pricing trends using trusted listing platforms or real estate market reports.
2. Compare amenities and services offered by different BTR operators. Consider factors such as maintenance response, security, pet policies, and community features.
3. Evaluate lease terms, including rent concessions, renewal options, and move-in specials. Many communities offer incentives like free weeks of rent or waived fees.
4. Read reviews and seek testimonials from current residents to gauge management quality.
5. If you have special requirements (such as accessibility or specific amenities), communicate these early in the leasing process.

For investors:

1. Analyze long-term demographic trends and employment growth in potential markets.
2. Partner with experienced developers and property managers familiar with BTR operations.
3. Diversify across regions and property types to mitigate localized risks.
4. Stay informed about regulatory changes, zoning developments, and market saturation signals.

Alternative Approaches

While purpose-built BTR communities are growing, alternatives exist for those seeking single-family rentals:

• Renting existing single-family homes: These are often listed by individual landlords or small property management firms.
• Lease-to-own programs: Some companies offer pathways to homeownership through structured lease agreements. These options may be limited based on location and credit requirements.
• Co-living and shared housing models: Particularly in high-cost urban areas, these arrangements provide affordability and flexibility, though with less privacy than traditional BTR homes.

To explore these alternatives, use search terms such as “single-family homes for rent,” “lease-to-own housing programs,” or “co-living communities” in your preferred real estate portals or with local agents.

Key Takeaways

The rise of build-to-rent housing developments is reshaping the American housing landscape, providing new options for renters and innovative opportunities for investors. Whether you are seeking a modern rental home or evaluating potential real estate investments, understanding the dynamics of the BTR sector-and knowing where and how to access these opportunities-can put you ahead in a shifting market.

Photo by Oleg on Unsplash

References

• [1] Primior (2025). Why Build To Rent Investment Is The Next Big Real Estate Opportunity In 2025.
• [2] LendingOne (2025). Top Build-to-Rent Markets In 2025.
• [3] National Association of Home Builders (2025). Flat Growth for Single-Family Built-for-Rent.
• [4] Arbor (2025). Build-to-Rent’s Robust Activity Settles into Stable Pattern.
• [5] John Burns Research & Consulting (2025). Spring 2025 Build-to-Rent Trends.