The build-to-rent (BTR) sector of the multifamily industry has taken off in the last five years. What sets apart this sector, which combines features of traditional multifamily with those of single-family housing, and how can you best position your available units to prospective residents? Here’s a closer look at this growing segment.
The rise of the build-to-rent sector
Owned by a single entity, a build-to-rent community is a professionally managed rental community that typically offers more privacy and space than traditional apartments. As with apartment rentals, however, residents are not responsible for landscaping, maintenance, or repairs — these tasks are handled by property management.
Though the typical build-to-rent community consists of single-family rental homes, these communities can also be made up of townhouses, cottages, and other building types. Unlike scattered portfolios of single-family homes, build-to-rent communities offer a neighborhood layout and are similar to gated residential neighborhoods. BTR communities often provide high-quality amenities, such as swimming pools, fitness centers, tennis and basketball courts, and dog parks.
Even though build-to-rent accounts for a fraction of rental units nationwide, this sector has seen rapid growth in the last five years. At the beginning of 2019, build-to-rent development nationwide was under 10,000 units. Following skyrocketing growth during the pandemic, development peaked in mid-2022 with 39,165 units under construction. As of the end of 2022, development remained high, with about 35,000 units.
BTR completions have grown 270 percent since 2019, according to data from the National Rental Home Council. Completions in 2023 grew 62 percent year over year.
The appeal of build-to-rent communities
Renters are drawn to the unique advantages of rental homes in build-to-rent communities. The sector attracts a diverse range of renters, including blue-collar workers, remote workers, millennials, retirees looking to downsize, families with children, and renters with pets.
The advantages for renters
Build-to-rent communities offer renters the benefits of living in a single-family home without the responsibilities and costs of home ownership.
These communities often provide sought-after features, such as:
- Private outdoor spaces, such as backyards and patios
- Private attached garages
- Two or more bedrooms
- Spacious floor plans and more storage options
- Privacy of not having neighbors above or below
- Community amenities, such as pools and fitness facilities
Renters can gain access to desirable neighborhoods where home prices are high, without having to put down a substantial down payment, qualify for a mortgage, or set aside funds for maintenance costs. This is especially appealing to renters by choice, families priced out of home ownership, and individuals looking for flexibility.
The advantages for owners and operators
As demand for build-to-rent communities has grown, this sector has attracted increasing attention from developers, owners, and operators.
Compared to apartments, BTR units generate higher rents on average. These communities have seen relatively steady rent growth, even as apartment rent growth has dipped into negative territory in some markets. Thanks to a historic undersupply of single-family homes, the BTR sector has shown resilience against market challenges.
Easily scalable, build-to-rent construction is relatively fast and affordable. Residents are often willing to move in before construction on other units or structures within the community is complete, providing an immediate return on investment.
Where are build-to-rent communities on the rise?
Development has boomed in the Sun Belt. As of 2024, Texas, Florida, North Carolina, Arizona, and Georgia have the greatest number of build-to-rent units under construction, according to CoStar data. Build-to-rent development is also popular in the Midwest, as well as California and Colorado in the West.
How to advertise your build-to-rent communities
The Apartments.com Network helps you advertise your units to attract renters interested in a single-family rental home.
When you list your property on Apartments.com, you can highlight:
- Addresses of individual units. List the unique address of each available home within the community.
- Unit-specific media. Show off photos, videos, and 3D walkthrough of individual homes.
- Property maps. Renters in this sector are especially interested in knowing where their future home falls within the community and what amenities are within walking distance.
- Single-family amenities. Highlight amenities renters are looking for, like private garages, backyards, and dens.
- Up to four bedrooms and up to three bathrooms. Renters searching for multiple bedrooms and bathrooms can easily refine their search to find the units that meet their needs.
- Detailed pricing information. Offer a clear breakdown of monthly and move-in costs for each unit, with transparent pricing by move-in date, lease terms, and optional fees.
What’s more, your listing will be posted across the Apartments.com, including Homes.com. Your available units will show up in rental searches on the fast-growing residential portal, giving you exposure to a broad pool of renters, including crossover shoppers still deciding between buying and renting.
Want to learn more about build-to-rent communities?
Get the latest on where the build-to-rent sector of multifamily is going. Check out these conversations with industry leaders:
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