The single-family rental (SFR) sector is in growth mode. The build-to-rent (BTR) industry has been one of the fastest-growing segments of single-family home construction for a number of years — and 2024 was no exception. Combining the flexibility and low maintenance of renting with the space, comfort and privacy of a single-family home, single-family rentals check all the right boxes. It’s no wonder, then, that builders are responding by increasing the construction of new single-family homes, which will help alleviate the housing shortage and introduce more options into the rental market.
The BTR sector reached a new all-time high in 2024: According to Yardi Matrix data as of March, the 39,000 houses for rent that were completed last year represent a 15.5% increase compared to the year before, and it’s worlds away from the 6,000 and 7,000 units per year that were coming online in the years before the pandemic.
Key Highlights From the 2024 SFR BTR Report:
- The build-to-rent sector breaks its previous record due to the 39,000 new single-family rentals that hit the market last year, a 15.5% increase compared to 2023.
- The South rules undefeated: With 4,460 completions, Phoenix claims the top spot, surpassing all other metros by a large margin. It’s followed by Dallas, where renters gained access to 3,197 new single-family homes for rent. Atlanta rounds out the podium as the only other metro with more than 3,000 new house rentals completed in 2024.
- Six more metros stand out for expanding their housing options with more than 1,000 single-family rentals: Houston (2,505 new units in 16 communities); Charlotte, NC (1,415 new units in 15 communities); Jacksonville, FL (1,201 new units in six communities); Huntsville, AL (1,098 new units in six communities); Columbus, OH (1,018 new units in seven communities); and Tampa, FL (1,005 new units in nine communities).
- The BTR sector is set to maintain its expansion as another 109,898 single-family homes for rent are currently in different stages of development across the country.
The build-to-rent sector continues its upward path, fueled by several factors that are slowly reshaping the housing market: Millennials who are creating families and looking to leave traditional apartments, but cannot yet afford homeownership; potential homebuyers of all ages who are sidelined by unaffordable home prices; high-income renters by choice; remote and hybrid workers in need of extra space; retirees; and older homeowners who can’t age in place, but who want the space, financial flexibility and low-maintenance lifestyle that renting offers.
And given that single-family homes went from about 3% of total home builds a few years ago to nearly 10% currently, it’s obvious that developers are reacting to pressure coming from growing demand, eroding homeownership affordability and renters’ need to live in spacious homes in highly amenitized communities — just to name a few.
Although the South continues to lead the BTR charge due to its swaths of vacant land, more relaxed zoning policies, and shorter permitting processes, build-to-rent homes are expanding beyond the more established Southwestern markets and into Georgia; North and South Carolina; Florida; and even California. In fact, in 2024 alone, 5,379 single-family homes were completed and 7,792 more rental homes are currently underway throughout Florida, while California added more than 1,800 house rentals and will complete 2,270 in the not-too-distant future.
Meanwhile, Texas’ booming job market and Arizona’s investment in health care services, transportation and trade are keeping housing demand high, thereby ensuring that these two Southwestern leaders remain at the top of the build-to-rent game with nearly 7,000 and more than 4,800 completed units, respectively. Not far behind, Florida and Georgia — two economic powerhouses recognized for their thriving business and labor climates — also shine due to the 5,379 and 4,095 new single-family rentals, respectively.
With more remote workers, entrepreneurs, and professionals drawn to the opportunities in these cities and metro areas, demand for rental homes continues to grow and thrive. In fact, most of the states where build-to-rent completions reached historic highs saw significant population increases, as well, according to the latest U.S. Census data:
Between 2023 and 2024, […] nine states (Arizona, California, Florida, Georgia, New Jersey, New York, North Carolina, Texas and Washington) experienced population gains of over 100,000 people.
Texas, the second-most populous state, had the largest numeric increase in the country, adding nearly 563,000 people for a total population of 31,290,831 in 2024.
North Carolina’s population surpassed 11 million (11,046,024) and Florida’s population now exceeds 23 million (23,372,215), as both states experienced growth well above the national average at 1.5% and 2.0%, respectively.
With single-family rentals, developers began to extend their focus beyond jam-packed areas (like central business districts and the most in-demand, in-city neighborhoods) in order to create communities where living space was no longer a challenge.
The perfect storm—created by remote workers’ need for space; young families putting down roots and looking for larger homes; strong job creation; and growing unaffordability of the for-sale sector — has led to the exponential growth of the build-to-rent market, which offers renters more spacious dwellings; modern home features and amenities; incredible conveniences; and last, but definitely not least, the community feeling that many may be searching for.
Phoenix; Dallas; Atlanta & Houston Are Epicenters of BTR
No matter how well states are doing, there are metro areas across the country that added more new single-family rentals than entire regions combined. This is mostly due to the more expansive metro areas in states like Texas and Arizona and the potential this creates for the development of sprawling communities of house rentals. As such, it’s Southwestern and Southeastern metros that lead with the most completions, driving most of the growth in the BTR sector.
Phoenix leads the way with an impressive 4,460 new units added in 2024, which represents an 18% increase compared to the previous year. Arizona’s largest city and capital, Phoenix is home to four Fortune 500 companies and thrives on key industries like real estate, finance, insurance, and manufacturing—making it a magnet for both residents and newcomers. And a closer look at the metro’s population growth is proof that the region is going in the right direction: In one year alone, between 2023 and 2024, the Phoenix metro added 85,000 new residents — the sixth highest net gain out of all of the metros in the nation.
Next up is Dallas — one of the largest BTR markets in Texas — which follows Phoenix with 3,197 rental homes built in 2024. For Dallas, last year’s numbers mark a 0.1% decrease in the number of completions, which prevented this metro from seeing a five-year high and setting it apart from all the other metros in this top 10. Fellow Texan Houston, however, more than makes up for the slowdown in Dallas: Space City recorded a 187% jump compared to the previous year.
Atlanta follows with 3,035 new single-family rentals — a step up from the previous year’s 2,651 units and a 15% y-o-y jump. Just like Phoenix, Atlanta is one of the top 10 metros for population growth, adding more than 75,000 in just one year. Clearly, demand is strong and the build-to-rent market taking off in recent years makes a lot of sense here.
Just like in Phoenix and Atlanta, the build-to-rent growth in Dallas and also in Houston is in sync with the larger population growth trend: Between 2023 and 2024, the two Texas metros added a whopping 198,171 (Houston) and 177,922 (Dallas) new residents, behind only the New York-Newark-Jersey City metro area.
Similar to Phoenix, where real estate developers have plenty of freedom to plan and build, Texas offers its own set of advantages that keep its cities and metro areas consistently attractive to both existing residents and newcomers. With no state income tax, a diverse economy, a strong job market, and relatively affordable housing, Texas continues to draw people looking to escape the high costs of coastal cities.
Six more metros are also playing in the big leagues, having added more than 1,000 new house rentals last year alone. Houston; Charlotte, NC; Jacksonville, FL; Huntsville, AL; Columbus, OH; and Tampa, FL, are working hard on seriously expanding their build-to-rent sector, while Huntsville, AL saw the most impressive y-o-y inventory increase of all at 255%.
Last year’s completions all pile upon existing supply, bringing total inventory numbers to new highs. But, looking back, the year immediately following the pandemic saw the most significant jump in build-to-rent numbers. More precisely, 2020 — but especially 2021 — created a massive shift in how people work, learn, and live, leading to big changes in what people needed and expected from their homes. As a result, demand for apartments began to shift from smaller units in pricey coastal markets to larger homes in more affordable secondary markets. That’s when single-family homes for rent started becoming increasingly more appealing.
In truth, the pre- and post-pandemic BTR landscapes are so different that comparing the two time periods — before everyone needed a single-family home with at least a small backyard and then after that — is like comparing apples and oranges: The market is unrecognizable. In just five years, the total number of build-to-rent single-family homes more than doubled, jumping from nearly 107,000 to 217,161.
Here again, Phoenix is in the lead for the five-year change with a total of 12,702 house rentals delivered between 2019 and 2024. The only other metro to add more than 10,000 units in just five years is Dallas, bringing its total inventory to 14,682 houses for rent across the metro.
Coming in at #3, Atlanta also added thousands of new house rentals across dozens of new communities — and here, the increase is truly impressive: Whereas inventory in 2019 comprised a grand total of 547 single-family rentals in BTR communities, in the five years that followed, Georgia’s largest metro added no fewer than 7,553 to bring its current inventory to a much more significant 8,100 units that are already occupied or are ready to welcome renters who are searching for more space and better amenities.
Top 3 Largest BTR Communities Delivered in 2024: Where Can Renters Find the Most Newly Completed Single-Family Rentals?
If we’re talking living big, we’re probably talking about Texas.
It’s not a surprise that the biggest community that was completed in 2024 — Litsey Creek Cottages in Roanoke, TX — opened its metaphorical and also very real gates last year, prepared to welcome 396 renters and renter families.
It’s followed by Viviano at Riverton, the largest new community in the Salt Lake City metro area and the second-largest in the nation to be completed in 2024.
Finally, with 334 units, The Bungalows on Camelback in Phoenix is the third-largest community to open its gates in 2024.
Check out what the largest new communities in the country have to offer:
1. Litsey Creek Cottages — Roanoke, TX
- 396 units
- Average square footage per unit: 1,151 sq. ft.
- Average number of bedrooms: 2.3
- Average number of bathrooms: 2.3
- Community amenities: two swimming pools, fitness center, club house.
2. Viviano at Riverton — Riverton, UT
- 364 units
- Average square footage per unit: 2,219 sq. ft.
- Average number of bedrooms: 3.6
- Average number of bathrooms: 2.8
- Community amenities: swimming pool, playground, fitness center, clubhouse, business center
3. The Bungalows on Camelback — Phoenix
- 334 units
- Average square footage per unit: 978 sq. ft.
- Average number of bedrooms: 1.9
- Average number of bathrooms: 1.5
- Community amenities: swimming pool, playground, fitness center, club house
What the Future Holds: 13 Metros Have 1,500+ New Build-to-Rent Single-Family Homes in Their Pipelines
In keeping with its record-setting streak of both completions and units under construction, the build-to-rent sector is in the process of adding tens of thousands of new house rentals to the market. Currently, 109,898 houses for rent are in various stages of development: Developers broke ground on 76,000 units and almost 34,000 are already permitted and waiting to start. What’s more, the top 10 metros with the largest numbers of units underway account for almost half of the total volume.
In the country’s largest build-to-rent market, Phoenix will add 13,010 single-family rentals in the following months and years. Dallas follows at a distance, with 8,450 units under construction and planned, while Atlanta is working on 6,644 new units.
Although BTR starts and completions could slow due to growing concerns about land; increasing land and building costs; and rising rates of construction financing, even a share of the units currently under construction would help bridge (to an extent) the supply-demand gap caused mainly by underbuilding.
According to a Yardi Matrix report, “The [50+ single-family build-to-rent] sector is impacted by the same factors limiting housing production of all types, including the cost of materials and labor; rising rates of construction financing; and concerns about oversupply in markets with robust multifamily development.”
Yet, demand remains strong and starts — as well as planned and prospective unit numbers — point to a bright future for renters looking to upgrade their living space and make a change from the busy apartment life to the more comfortable life in a build-to-rent community. Local developers and builders are hard at work in many metros, focusing on the units that have already broken ground, as well as on the planned and prospective units that exist, at least for the moment, only on paper.
Methodology
Point2Homes.com is a real estate listing portal for rental homes across the United States. Part of Yardi Systems, Point2Homes covers housing trends and news through comprehensive studies that draw from internal data, public records, governmental sources, and online research.
This study is exclusively based on data related to build-to-rent communities containing at least 50 single-family rental units, located in build-to-rent, professionally managed communities in the markets covered by Yardi Matrix research. This analysis does not include other types of single-family rentals that are not located in build-to-rent communities.
Yardi Matrix data as of March, 2025 was used throughout the report. Data for some markets may not be available and data for the locations included in the analysis may be subject to change.
Build-to-rent communities are defined by Yardi Matrix as communities where at least 50% of the units fit one of the following criteria: (1) They do not share any walls with other units, or (2) they have shared walls, but do not have neighbors above/below or have a direct-access garage.
For the purposes of this study, we considered as “completed in 2024” only units that received a certificate of occupancy by the end of December 2024. Units under construction either have not yet received an official certificate of occupancy or are currently being built. Under construction data may be incomplete and is subject to change.
Image credit: JazK2 / Shutterstock.com
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