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.”
Institutional vehicles can channel capital to a rental sector that remains less institutionalized than the United States market. Rental homes accounted for 16.4% of Mexico’s housing stock, and fewer than 5% were institutionally managed in 2026. Built to https://www.ourbow.com/tag/awards/ rent transaction volume exceeded USD 500 million in the first quarter of 2026, including transactions on Long Island, in suburban Chicago, and in Charlotte. The United States housing supply deficit reached 4.03 million homes in 2025, including 1.62 million units in the South. This category includes households that can afford well-located, professionally managed homes but face barriers to down payments and mortgage payments. The National Multifamily Housing Council’s 2025 Top Owners list shows a wide gap between the largest owners with proprietary systems and managers that serve diverse client portfolios.
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.
- Purpose-built rental apartments serve higher-density urban residents, while purpose-built rental houses / townhomes provide more privacy and outdoor space in suburban settings.
- While BTR development spreads across many markets, it’s especially concentrated in Sun Belt metros and other fast-growing regions.
- A part of why the build-to-rent model is so popular, beyond affordability, is the sense of community it provides.
- We also asked top experts in the home construction industry to share their insights about where the market is headed and why it matters.
- Rental homes accounted for 16.4% of Mexico’s housing stock, and fewer than 5% were institutionally managed in 2026.
Geography Analysis
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.
Platform user insights and resources
The key benefit of living in 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.
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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.
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 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.
Key Questions Answered in the Report
We advise executives involved in building, buying and renting homes and apartments If you have any questions about our services or would like to speak to one of our experts about how we can help your business, please contact Client Relations at email protected. How do operation costs compare across different regions and portfolios? A ground-level window into factors impacting BTR investment decisions, including access to capital and asset performance The NRHC supports efforts to strengthen neighborhoods by filling an important need in today’s growing rental housing market.
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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 https://thecolumbianews.net/the-land-plot-in-moscow-city-will-be-sold.html 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.
- This growth reflects continued household demand for detached homes, private yards, and shared community features.
- Hybrid structures suit mid-sized owners that seek institutional operating practices without building a full internal platform.
- Insights into the BTR leasing environment, including occupancy, demand, rent growth, and operating expenses
- These arrangements can give homebuilder-linked and institutional platforms more flexibility to acquire land, build homes, and decide when to sell or retain assets.
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