Texas, Arizona lead boom of new build-to-rent homes

The build-to-rent (BTR) sector is surging in early 2025, with over 110,000 single-family rentals (SFR) under construction across the U.S., according to a report by Point2Homes and Yardi. The expansion will increase BTR inventory by over 53%, with Texas (21,812 units) and Arizona (13,972 units) leading the way. High mortgage rates and soaring home prices have made renting a more affordable option, with many renters now choosing BTR communities over homeownership.
Metro areas such as Phoenix, Dallas, and Atlanta are experiencing SFR inventory increases between 70% and 90%, while states with historically low inventory, like Nebraska and Rhode Island, are seeing rapid growth. Despite its momentum, the BTR sector remains vulnerable to economic pressures such as rising construction costs and concerns over oversupply. However, as affordability challenges persist, developers are aligning their strategies with renters’ needs, solidifying BTR housing as a key component of the evolving U.S. housing market.
Source: https://www.housingwire.com/articles/texas-arizona-lead-boom-of-new-build-to-rent-homes/