The build-to-rent (BTR) sector set a new construction milestone in 2023.
Nearly 27,500 BTR single-family homes were completed last year – a 75% increase from the previous year and triple the number completed in 2021. Phoenix, Dallas, and Atlanta lead the charge, collectively accounting for nearly one third of all units added in 2023.
The momentum continued into 2024, with 45,400 BTR homes currently under construction.
The build-to-rent sector is booming due to a perfect storm of factors. The rise of remote/hybrid work arrangements and the mounting obstacles towards homeownership have heightened demand for rental housing. This demand caught the attention of institutional investors, whose capital has helped catapult the BTR sector to unprecedented heights.
Implications for property managers
As BTR housing flourishes, property managers have ample opportunities to tap into this trend, either by encouraging landlords to invest in new properties or even investing themselves.
Additionally, private BTR communities may need dedicated in-house property managers or third-party property management consultants to help manage the unique demands of occupants.
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