12 minutes read

The build-to-rent market is firing on all cylinders, with occupancy levels at a solid 95% and strong construction activity in most states and metros across the country. Nationwide, more than 110,000 new single-family homes for rent are currently under construction. Whether developers broke ground on these projects three days or three years ago, it’s likely that the bulk of them will reach renters in search of more living space and better amenities in the months and years to come.

Key Highlights:

  • In the U.S., a total of 110,727 single-family rentals are under construction in 613 communities. This will expand existing build-to-rent inventory by a robust 53.5% when completed.
  • Texas is in the lead by a long shot with an impressive 21,812 houses for rent in different stages of the construction process, all ready to hit the market in the near future as developers complete the projects and the houses for rent are made available to renters.
  • Arizona and Florida follow at a distance, with nearly 14,000 single-family rentals in the pipeline each. North Carolina is close behind, as developers here are working to deliver more than 12,000 units.
  • Zooming in to the metro level, it’s Phoenix that boasts the most ambitious numbers: The 13,113 units under construction here account for nearly the entire volume of units being built in the state. Dallas takes the second spot, but trails behind Phoenix with 8,470 single-family rentals in various stages of development across the metro.
  • Although the numbers are not as high as in Phoenix and Dallas, developers in 22 other metros are working on 1,000 to nearly 7,000 units, which will probably reach renters in the years (or hopefully months) that follow.

In the 5 States With the Most Units Under Construction, Supply Will Increase More Than 50% Upon Delivery; North Carolina Stands Out With a 152% Jump

Texas‘ strong job market and Arizona‘s shift toward environmental sustainability ensure that the two Southwestern build-to-rent leaders will keep their crowns. Rising numbers of remote workers, as well as entrepreneurs and business-people, are attracted to the cities and metros here — to the opportunities these areas offer — which is creating and sustaining demand for houses for rent in the process. What’s more, with 21,812 and nearly 14,000 single-family rentals in the pipeline for the following months, it seems Texas and Arizona renters have increasingly good chances at finding the right home for their needs.

Meanwhile, the other kids on the block (the build-to-rent markets that follow in the footsteps of the two largest build-to-rent markets in the country) round out the top 5 states with the most single-family rentals in the pipeline: Developers in Florida, North Carolina and Georgia are working on thousands of single-family homes for rent across dozens of communities that promise to upgrade renters’ lifestyles.

Typically, coastal states — and especially the urban hubs where the booming business, tech and financial sectors are concentrated — attract higher numbers of people looking for jobs and business opportunities. This creates extremely high-density, localized hotspots that become narrow epicenters of demand and, naturally, supply.

So, it’s interesting to see that developers are starting to extend their focus beyond jam-packed areas like the central business districts and even the first ring of suburbia in order to create communities where living space is no longer a challenge. Of course, the pandemic created both the need and the conditions for more spacious rentals, and developers jumped at the opportunity to build bigger house rentals — managing to tick the affordability box by extending further in the metro.

Equally interesting are the states that follow the top five fastest-expanding ones. In a move that reinforces the trend of coastal states becoming synonymous with generous homes for rent and not just compact living, California and South Carolina perform better than many other regions that have come to be associated with living large: House renters in the sunny state and the Palmetto state will soon have 4,384 and 3,567, respectively, new, spacious single-family homes for rent to choose from.

However, when looking at the states that stand to gain the most not only in terms of net numbers, but also in terms of inventory growth, or percentage growth, it becomes obvious that a state can shine in more ways than one.

Market leaders like Texas, Arizona, Florida, North Carolina and Georgia boast huge numbers of single-family rentals under construction. These net numbers also translate to large-percentage increases in the overall rental inventory. For example, the nearly 22,000 new single-family rentals that Texas is working on will represent an impressive 70% increase in total inventory.

In fact, the total supply of single-family homes for rent will go up by at least 50% in all five of these leading states when the units that are currently under construction hit the market, with North Carolina hitting it out of the park due to a 152% expected increase in inventory. Therefore, these states boast both high net numbers of units under construction and high potential increases in inventory.

Another way in which a state can shine is by the increase in inventory alone: In Nebraska, Rhode Island, Delaware, New Hampshire, North Carolina, New Mexico, and Virginia, the number of units currently in the pipeline will bring about rental supply increases of more than 100% and even 255% (in Nebraska). Sure, states like these have much lower inventories, and the couple of hundred houses for rent that will be added have a more striking impact on paper. This might seem less impressive than winning on both fronts, but it means that more states are joining the build-to-rent bandwagon, to offer their renters more and better housing options.

This is possible because the build-to-rent sector has several aces up its sleeve — and it’s using them to create more spacious dwellings for renters who need more elbow room, but who can’t afford to buy yet. Developers are moving away from the city proper to build communities of single-family rentals, which means sky-high land costs and zoning requirements are fading away in the rearview mirror. This then equates to more streamlined permitting and building processes, which offers renters access to more living space that’s more affordable, faster.

According to Doug Ressler, Senior Analyst & Manager of Business Intelligence at Yardi Matrix, affordability is just one of the advantages that the single-family build-to-rent sector offers:

More and more build-to-rent (BTR) residents consider themselves renters by preference compared to 2023 (36% in 2024 vs. 27% in 2023). The biggest hurdle to buying a home for BTR residents is high mortgage rates, so BTR homes provide an affordability solution in today’s increasingly expensive housing market.

On average, renting a BTR unit is cheaper than buying a starter home. Recent reports indicate that renting can save one around $1,000 per month compared to buying. This is largely due to high mortgage rates and elevated home prices.

Millennials and Gen Z are increasingly favoring rental options over homeownership due to high property prices and student debt. BTR communities cater to their preferences for mobility, flexibility, and modern amenities.

As urban areas become more congested and expensive, there’s a growing trend towards suburban living. BTR properties in suburban areas offer more space and affordability while maintaining connectivity to urban centers.

15 Metros Have 1,500+ New Build-to-Rent Single-Family Homes Underway, but Phoenix Outshines Everyone

Texas may lead with the most houses for rent under construction but, at the metro level, Phoenix not only surpasses all of the other metros, but it also has more single-family rentals in the pipeline than all states except Texas, Arizona itself and Florida. Local developers are working to deliver no fewer than 13,113 units in Arizona’s largest metro, with 659 single-family rentals slated for the Tucson metro and 200 more in Flagstaff.

Arizona’s capital and most populous city is home to four Fortune 500 companies and its active top industries (real estate; finance and insurance; and manufacturing) ensure that the area remains attractive to residents and newcomers alike. What’s more, the city’s shift toward sustainability is opening the door to new opportunities brought about by the environmentally conscious businesses and people looking to change the area for the better.

Top metros for single-family rentals in the pipeline

Following in Phoenix’s footsteps is Dallas, with 8,470 single-family rentals under development. Given that the Lone Star State is in the lead, by far, when it comes to new house rentals underway, other Texas metros clearly boast equally impressive numbers: Houston, Austin, and San Antonio will add 4,613; 4,313; and nearly 3,000 new houses for rent, respectively, bolstering the rental market and ensuring that renters have plenty of options.

Like Phoenix, where real estate developers face few constraints when planning and developing new projects, Texas has a few advantages of its own that ensure the cities and metros here remain perennially popular with residents and people looking to relocate, as well. Namely, the lack of a state income tax — coupled with its diverse economy, strong job market, and more affordable housing — ensure a consistent flux of people who are looking to relocate from more expensive coastal areas.

Five other metros managed to squeeze into the top 10 metros with the most single-family rentals under construction. In third place (but at a great distance from leaders Phoenix and Dallas), Atlanta developers are hard at work setting up 43 new communities that will add 6,885 new single-family homes for rent to the existing supply.

In Atlanta, constant demand from the sustained population growth puts a healthy pressure on the housing market, fueled by the city’s economic development. Factors like the city’s business-friendly environment — as well as its focus on technological innovation, building opportunities for its highly-educated workforce and the continuous improvement of its logistics sector — ensure that Georgia’s capital remains highly attractive.

Just like the Southwest, with build-to-rent behemoths Texas and Arizona, the Southeast is holding its position in the single-family rental construction race. Aside from Atlanta, the region is represented by no fewer than four other metros with enough house rentals under construction to secure their spots in the top 10 metros with the most build-to-rent units underway: Charlotte, NC; Orlando, FL; Raleigh, NC; and Huntsville, AL, boast between 2,000 and 5,368 new single-family homes for rent that are currently under construction.

Clearly, increased construction activity in these areas is fueled by local economic initiatives and business opportunities that create jobs, thereby attracting more and more people. Even so, another driver of the build-to-rent boom is the 180-degree pivot in demand caused by the pandemic and the change that it brought to the work landscape.

More precisely, demand for apartments started shifting from smaller units in pricey coastal markets to larger homes in more affordable secondary markets. This was driven by remote work and stay-at-home needs, and spurred record-breaking price increases for single-family homes. Together, these trends — rising rental demand for spacious units and skyrocketing single-family home prices — redirected both renters' and developers' attention to the single-family rental market, which explains (at least in part) the momentum of the sector.

It's worth noting that, after peaking in 2023, the number of single-family rental starts dropped in the first three quarters of 2024. According to the most recent 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."

Even though starts are starting to lose a bit of steam, demand remains strong and under construction numbers point to a bright future for renters looking to upgrade their living space and their home features and amenities.

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.

This analysis was performed by Point2Homes using data provided by our sister company, Yardi Matrix. The data includes only properties defined as single-family homes for rent that are located in build-to-rent, professionally managed communities in the markets covered by Yardi Matrix research. Data for some markets may not be available and data for the locations included in the analysis may be subject to change. This analysis does not include other types of single-family rentals that are not located in build-to-rent communities.

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 "units in the pipeline in 2025" as all units that are (1) currently under construction and (2) currently planned (units that have already been permitted).

"Units under construction" hadn't received a certificate of occupancy by the end of December 2024 or are currently being built. Under-construction data may be incomplete and is subject to change. "Planned units" are units for which all zoning issues have been resolved and the appropriate legal institution has signed off on and approved the development proposal submitted.

Fair use and redistribution

We encourage and freely grant permission to reuse, host or repost this article. When doing so, we only ask that you kindly attribute the authors by linking to Point2Homes.com or this page, so that your readers can learn more about this project, the research behind it and its methodology.

Andra Hopulele is a Senior Real Estate Writer at Point2Homes. She holds a BA in Language, one in Psychology and an MA in Cultural Studies. With over seven years of experience in the field and a passion for all things real estate, Andra covers the impact of housing issues on our everyday lives, including the latest news on residential development, the dynamics of house rentals, advice for first-time renters and rental market news. She also writes about the financial implications of the new generations entering the housing market, with a focus on renters' perspectives and challenges. Her studies and articles have appeared in publications like The New York Times, Yahoo Finance, Business Insider, MSN, The Real Deal, Huffington Post etc. She can be reached at [email protected].