Developers and investors across the country, meanwhile, are following the trends that brought BTR properties to popularity during the COVID-19 pandemic. Many institutions are committing billions of dollars toward placing purpose-built homes in attractive neighborhoods for the exclusive purpose of renting them out. Housing preferences across the U.S. continue to change, but substantial recent bets by institutions show the build-to-rent (BTR) asset class is here to stay. Join our passionate team of experts, and contribute to the most trusted market analysis in the US Network with a wide variety of industry experts as you attend exclusive events and monthly webinars
Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Build-to-rent communities often include professional property management services, ensuring well-maintained homes and quick resolution of any maintenance issues. Try searching our site for hundreds of rental property topics including loans, investor tool reviews, real estate companies, property management tips and more. Such tools for real estate investors can automate tasks like rent collection, maintenance requests, and tenant communication, freeing up valuable time for property managers. Many build-to-rent communities work with professional property management services to handle property maintenance. Property management teams are responsible for maintaining the exterior and landscape, so residents can enjoy the comfort of a well-maintained home without the added stress of yard work and exterior upkeep.
A part of why the build-to-rent model is so popular, beyond affordability, is the sense of community it provides. In 2025, townhomes have emerged as the preferred style for build-to-rent developments, according to 53% of experts. 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. What may be surprising, though, is that 49% of experts agree that Gen Zers are a driving force behind the surging BTR market. “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.”
Build-to-Rent Survey
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. That increased cost for traditional construction drives affordability even lower, creating more demand for creative solutions, like build-to-rent homes. There’s another growing trend in the BTR market that could help improve BTR affordability in the years to come. With more tenants seeking out build-to-rent homes, it’s the demand that’s starting to drive market trends. 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. “Younger residents are renting for longer to keep ‘optionality’ for both their physical location as well as their job/career,” said Isakson.
- The North America built to rent residential market is gaining a broader demand base than one focused solely on higher-income renters.
- 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.
- Rental households supplied nearly 80% of the United States household growth in 2025, adding 898,000 net renter households and reaching 46.1 million.
- Competition in the North America built to rent residential market is moderately consolidated among large institutional platforms and fragmented among smaller owners and developers.
- Third-party operators held 64.2% of the North America built to rent residential market share in 2025, demonstrating the importance of specialized operating platforms.
Geography Analysis
Higher debt costs have constrained the number of projects that can move from planning into construction. Institutional investors are providing more capital for purpose-built rental communities across North America as build to rent becomes a recognized residential asset class. The South had more than 37,400 built to rent units under construction in May 2026, accounting for 61% of the national pipeline. Canada is expanding purpose-built rental supply through public financing, and Mexico is developing institutional rental investment structures, which broaden the regional opportunity.
Its expansion reflects demand from households with limited options in many local housing markets. AMH delivered 542 newly constructed homes to its wholly owned operating portfolio in the second quarter of 2026 and reported same-home Core Net Operating Income growth of 3.7% for the quarter. These operators can spread leasing, maintenance, resident technology, and compliance costs across several communities. This growth reflects continued household demand for detached homes, private yards, and shared community features. This structure combines institutional capital with specialist development and operating capabilities. CPP Investments expanded its U.S. single-family build to rent joint venture with Greystar to USD 1.4 billion in August 2025, including USD 632 million in new equity.
Demographic Shifts and Tenant Priorities
Predictive maintenance and smart-home integration have helped operators be more proactive—a mutually beneficial arrangement for them and for tenants. Tenant-first proptech is designed to meet the needs, preferences and experience of renters. Demand https://alcitynews.com/types-of-foundations.html for tech-enabled efficiency is growing in real estate, and the applications to BTR properties align with those that finds the property technology (proptech) asset class so attractive.
- 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.
- Insights and analysis on economic growth and risks, consumer behavior and finances, mortgage underwriting and policy, first-time and investor buyer activity, and national demand and supply.
- 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.
- 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.
- Multifamily built to rent held 46.5% of the North America built to rent residential market share in 2025, reflecting its ability to support larger portfolios and lower per-unit land costs.
- 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.
The key benefit of living in https://darkside.ru/news/news-item.phtml?id=155728&dlang=en a build-to-rent community is hassle-free maintenance. These planned neighborhoods encourage social interaction and promote a sense of belonging among residents. Build-to-rent communities offer a wide range of amenities designed to enhance the lifestyle of their residents. These properties contain two attached units sharing a common wall, allowing residents to live in close proximity while maintaining some degree of separation.
It’s a critical facet of BTR, as the goal of these properties is to deliver the comforts and personalization of homeownership without the usual maintenance responsibilities and costs. We identify and analyze consumer home buying and renting preferences, including design trends Insights into the BTR leasing environment, including occupancy, demand, rent growth, and operating expenses High homeownership costs, delayed household formation, and demand for managed homes are key factors. Competition in the North America built to rent residential market is moderately consolidated among large institutional platforms and fragmented among smaller owners and developers. The North America built to rent residential market size for these homes is supported by households that seek the space of ownership but cannot purchase.