Build-to-Rent Homes Report 2025

Many aspiring homeowners are seeing the writing on the wall: housing is less affordable than ever before, thanks to peaking home prices, high interest rates, and rising building costs.

“[These factors have] put tremendous pressure on the for-sale market from a demand standpoint,” said John Isakson, CEO of ARK Homes for Rent. “Stricter underwriting standards, higher down payment requirements, and tougher qualification requirements have [also] made it more difficult for homebuyers to secure financing in the last three to four years.”

Renting is a more affordable option in many cases, but traditional rentals that offer limited square footage, privacy, and outdoor space are continuing to give way to build-to-rent (BTR) homes, which couple many of the perks of homeownership with the affordability of renting.

In this annual edition of Fixr.com’s Build-to-Rent Homes Report, we explore developing trends that are shaping this sector of the real estate market, including home style preferences, comparative affordability, and more. We also asked top experts in the home construction industry to share their insights about where the market is headed and why it matters.

Main Findings

• Fixr.com estimates that the total number of BTR home starts nationwide in 2024 is 130,520, a 134% increase since 2019.

• According to 64% of experts, millennials drive the demand for BTR homes.

• In 2025, 53% of experts report that townhomes stand out as the most popular BTR home style.

• Phoenix, Dallas, and Atlanta are the hottest BTR markets in the U.S.

• More than half of our survey respondents (53%) believe that rising housing costs driven by tariffs will lead to greater demand for build-to-rent housing.

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Build-to-Rent Home Construction Rate

The Build-to-Rent sector growth has been fueled by, demographic shifts in housing preferences, affordability of home ownership and a decline in the availability of credit for home purchases.

John Isakson

CEO

ARK Homes For Rent

One of the best ways to see how the market is growing is to look at the number of new construction homes that are designated specifically as “build-to-rent.” These are properties that builders, investors, and even individuals construct with the sole purpose of renting to long-term tenants. In 2024, we estimate that the number of new BTR homes topped 130,000, marking a 134% increase since 2019.

According to an analysis of the U.S. Census Data, the National Association of Home Builders (NAHB) reports that 90,000 homes were built to rent in 2024. However, this doesn’t account for the total housing starts that were sold to investors for rental purposes. In fact, the NAHB estimates that an additional 4% of homes that were built last year were then sold to investors who planned on renting them out long-term. Those additional 40,520 units aren’t accounted for in the NAHB’s statistics, but since they’re functioning as BTR starts in practice, we’ve included them to get a total number of build-to-rent homes available to renters, bringing the total to 130,520 BTR units constructed in 2024. Not only is that a 134% bump from 2019, but it’s also a 16% increase since 2023.

Why are so many people migrating toward the BTR model? Affordability is a major driver, of course, but why BTR homes and not units in multi-family homes, co-op buildings, and apartment complexes?

“One clear driver behind the growth of build-to-rent (BTR) is the post-COVID shift in consumer preferences toward larger, more private living spaces; an evolution that has made traditional multi-family housing less appealing for many,” says Ryan Kang, co-founder and president of Market Stadium, a company that provides real estate and housing data to investors.

Gone are the days when cramped basement apartments and 500-square-foot condominium units are ticking the boxes for homebuyers. People may not be able to afford to purchase their dream homes, but they want privacy, room to live, and space to entertain, even if they need to turn to a rental to afford housing.

The build-to-rent model provides exactly what many renters are looking for these days: square footage that can accommodate growing families, open yards, no or few shared walls, and a space that feels more like home than a pit stop on the way to ownership.

That surge in the demand for BTR housing has been so significant that it has caught the attention of investors, too. A great way to predict the future of the housing market is to follow the money, and right now, that money is starting to flow toward the build-to-rent model.

“To meet this rising demand, a significant influx of institutional capital has entered the BTR sector,” added Kang. “We’ve seen this trend firsthand through our own clients; many of [them] previously focused exclusively on traditional multi-family investments and development [but] are now showing growing interest, and in some cases reallocating capital, toward the build-to-rent space.”

Millennials Lead the Build-to-Rent Trend

64% of the experts we surveyed agree that Millennials are leading the charge when it comes to driving the growth of build-to-rent home construction. This probably isn’t a surprise; according to the National Association of Realtors (NAR), Millennials are the most active generation in the hunt for housing.

What may be surprising, though, is that 49% of experts agree that Gen Zers are a driving force behind the surging BTR market. The NAR reports that a much smaller share of the homebuyer market in 2024 (just 3%) belonged to Generation Z. This is a good indication that the younger generations are flocking toward alternative housing arrangements, like build-to-rent homes.

These numbers suggest two things. First, the younger generations turning more to renting is a sign that housing affordability is on the decline. Second, it hints at housing trends that go beyond the high cost of buying.

Millennials and Gen Zers prefer to rent, in part because they value the flexibility it offers. A tenant rarely has to pay for home maintenance and repairs, they don’t take on the massive financial risk that buying a home presents, and they can relocate more freely. According to experts, that last point could be a big reason why the younger generations, who make career changes more often, favor the flexibility of renting.

“Younger residents are renting for longer to keep ‘optionality’ for both their physical location as well as their job/career,” said Isakson. “People are moving more often and changing jobs more frequently than past generations.”

Townhomes Are the Top Build-to-Rent Home Style in 2025

In 2025, townhomes have emerged as the preferred style for build-to-rent developments, according to 53% of experts. Townhomes share one or two exterior walls with adjoining units, offering slightly less privacy than a single-family BTR home. However, construction for townhomes is more affordable, and with housing affordability being a main reason for the BTR boom, this is one area where renters are willing to compromise a bit for decreased costs.

A part of why the build-to-rent model is so popular, beyond affordability, is the sense of community it provides. Renters want private spaces to call their own, but they’re prioritizing space efficiency and community-oriented housing options over standalone units that look and feel more like a traditional detached house.

Single-family BTR homes are still quite popular, with 47% of experts agreeing that they’re at the top of long-term renters’ lists. They typically come with higher monthly rents due to increased construction costs, but they offer the privacy and yard space that a traditional single-family residence would, with the added perks of community centers, high-end amenities, and robust property management.

After that, 31% of experts say that horizontal multi-family units are the go-to style for today’s renters. These units are typically fully attached and share two exterior walls with the neighboring units, but renters still get ample living space and, often, a private outdoor area.

Cottages and other styles make up a smaller share of the BTR market, with experts agreeing that 11% and 4% of renters, respectively, are seeking out these options.

One positive effect of these trends developing is that investors are starting to take notice, and they’re building properties for long-term rentals that directly reflect what renters want.

“We are starting to see developers come to the sector with BTR product design specifically in mind,” said Isakson. “They are designing communities to stand alone as BTR products with dedicated amenities, clubhouses, office space for leasing and maintenance operations and designs that accommodate a renter (larger driveways to accommodate visitor parking and more dedicated visitor parking is a great example).”

That old adage, “if you build it, they will come,” is starting to get turned on its head. With more tenants seeking out build-to-rent homes, it’s the demand that’s starting to drive market trends. With the preference now trending toward townhouses for build-to-rent homes, the future could hold more developments of townhouses specifically for BTR purposes.

Style is just one piece of the puzzle, of course. There’s another growing trend in the BTR market that could help improve BTR affordability in the years to come.

“One under-the-radar trend in the space is the growing adoption of modular and prefab construction,” said Kang. “As labor shortages and material costs continue to pressure traditional building timelines, modular construction offers a faster, more cost-efficient alternative. [This is] especially critical in BTR, where speed-to-market and scale directly [affect] returns.”

The Hottest Build-to-Rent Markets in the U.S.

The build-to-rent real estate model has taken off in the last few years, but where is it seeing the most demand? According to an analysis performed by Point2 Homes in March 2025, major metropolitan areas in Arizona, Texas, Georgia, and North Carolina are seeing the biggest surge in BTR construction.

In Phoenix, these new development projects accounted for an incredible 35% of all the BTR completions over the past five years. The recent growth of the build-to-rent market in Atlanta is even stronger, with 2024’s completed projects accounting for 40% of all completions over the past five years.

Other metropolitan areas hitting record-high project completions in 2024 included Jacksonville (1,201), Huntsville (1,018), and Tampa (1,005).

The number of units being developed suggests that BTRs are a force to be reckoned with in the U.S. housing market. Even more impressive is that many of these major metros are also seeing increased build-to-rent project growth year over year, which suggests that this trend is very much still in its initial growth phase.

Areas that have seen five-year highs for new BTR construction in the past year include Phoenix (4,460), Atlanta (3,035), Houston (2,505), Charlotte (1,415), Minneapolis (926), Salt Lake City (919), North Port (859), Riverside (743), Savannah (628), Myrtle Beach (590), Omaha (554), Sacramento (550), and Lakeland (497).

For renters looking to capitalize on the perks of the build-to-rent model, there are more housing options than ever before.

The Future of BTR: 53% Say Tariffs Will Drive the Demand

Trump’s proposed tariffs may boost demand for Build-to-Rent (BTR) housing by making homeownership more expensive due to higher construction and material costs, pushing more households toward rental options.

Ryan Kang

President

Market Stadium

The future of the build-to-rent model seems strong, at least based on the number of new units being built across the country with long-term renters in mind. Unfortunately, the affordability of BTR homes may be trending in the direction of the rest of the housing market, and more than half of the experts we surveyed agree that the recent tariffs could play a role in rising build-to-rent costs.

It seems to be a domino effect creating a new housing landscape: tariffs are increasing the cost of construction materials, which drives up the price of homes for purchase. That increased cost for traditional construction drives affordability even lower, creating more demand for creative solutions, like build-to-rent homes. And that increased demand, according to 53% of professionals, will bring higher monthly rent rates for BTR units.

Things get more complicated when you consider that those same increased costs for imported materials will also drive up operating costs for investors and management companies who build, own, and operate BTR communities.

“[Those] same tariffs could also increase development costs for BTR operators, potentially limiting new supply by reducing project profitability and investor confidence,” warned Kang. “As a result, while rental demand may rise, supply could face constraints. [This creates] a mixed outlook where [the BTR model] benefits from shifting consumer behavior but grapples with cost-driven headwinds. The overall impact will likely vary by region, developer scale, and access to capital.”

What It All Means for You and the Housing Market as a Whole

If an affordable living space in a build-to-rent community with amenities and convenience is a part of your American dream, the future holds some uncertainty. The bad news is that even “affordable” housing options could become less affordable in the near future, thanks, in part, to the recent tariffs imposed on imported materials.

But there’s good news, too. The BTR model not only seems like it’s here to stay but is also growing rapidly and catching the attention of developers and investors who can help make that dream a reality. And with that increased focus on build-to-rent options, experts report that builders are now focusing more on the specific needs of those looking for BTR housing, which means more units that align with tenant preferences.

Methodology

The contributors to this report were selected due to their extensive expertise, as well as their success in the industry and reputable designs. Their responses are based on their first-hand experiences with homeowners, therefore representing a clear picture of current trends in 2025. In total, 52 experts responded to our survey.

To compile the trends and associated percentages, we asked them multiple-choice questions. All percentages were rounded. In most cases, they were able to select more than one option. Most of the experts who participated in the survey are listed below. Some wished to remain anonymous.

Expert Contributors

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