What is Build-to-Rent? 

Build-to-rent (BTR) is a real estate investment approach centered around the construction of purpose-built rental properties, such as apartment complexes or housing communities, with the primary intent of generating rental income. In contrast to traditional real estate development, which often involves selling individual units or homes, BTR focuses exclusively on creating rental units. This strategy is gaining in popularity due to the rising demand in the rental market from buyers turning towards renting due to affordability concerns. 

Build-to-Rent (BTR) Increasing Demand 

According to Fixr.com’s “Build-to-Rent Homes Report 2023” The National Association of Homebuilders estimated that “69,000 BTR homes began construction in 2022.” Fixr goes on to predict that this number is slightly higher due to the construction of homes sold to other parties specifically for rental purposes, totaling this estimate to actually be closer to 119,250.  The chart below showcases an over 50% increase in build to rent starts over the course of five years. 

Reported by Fixr.com based data from the Census and National Association of Homebuilders (NAHB).

Who is Driving this Build-to-Rent Demand?

According to the report, demand for BTR homes is split between Gen Z (55%) and Millennials (41%).  Tenants in these age demographics prefer the lifestyle opportunities that BTR properties can provide. Because purchasing a home may be unaffordable for many, the option and flexibility that comes from renting one of these BTR properties is much more attractive. There are no maintenance costs, no mortgages to pay, and the community amenities and benefits without the added price tag of home ownership. 

Where is Build-to-Rent Demand the Highest? 

According to data provided by RentCafe, Phoenix, Arizona tops the list for the most tenants moving into 6071 rental properties in the last five years, increasing from 2168 units in 2017 to 8239 units in 2022. Charlotte, North Carolina however had the highest percentage growth for BTR units in five years at 621%. Below are the top 20 areas with the most BTR units, with Phoenix, Dallas, Detroit, Houston, and Atlanta making the top five. 

Top 20 Metros with the Highest BTR Units Built Over the Past 5 Years

Reported by Fixr.com based Yardi Matrix data.


The growing build-to-rent market offers real estate investors lucrative opportunities to capitalize on for their next investment property purchase. LendingOne’s Private Client Group offers investors in this market customized financing options such as a Bridge-to-Permanent Loan and a BTR CO Bridge Loan. Learn more here

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