The U.S. build-to-rent (BTR) housing sector reached new heights in 2024, completing a record-setting 39,000 single-family rental homes — a 15.5% increase from the previous year — according to a new analysis by Point2Homes.
That figure marks a sixfold leap from the pre-pandemic years, when the country was averaging between 6,000 and 7,000 completions annually, according to the report.
Southern cities take the lead
The South dominated the BTR market in 2024, with Phoenix leading all U.S. metros after delivering 4,460 new rental homes — an 18% year-over-year increase. The metro also saw one of the nation’s highest population growths, adding roughly 85,000 new residents between 2023 and 2024.
Dallas followed with 3,197 new units, while Atlanta came in third with 3,035, a 15% increase from the previous year. Houston wasn’t far behind, clocking 2,505 completions across 16 communities — a 187% year-over-year surge.
“These metros are becoming hubs for build-to-rent development,” the report said. “And it’s no coincidence — most of them also posted some of the largest population gains in the nation.”
States like Texas, Florida, and Georgia benefitted from job growth, affordable living costs, and friendly zoning regulations, the report said.
Florida added more than 5,300 new BTR homes last year and currently has nearly 7,800 more in development. California also made significant gains, adding over 1,800 new units with another 2,270 in the pipeline.
Why renters are turning to single-family homes
A confluence of social and economic factors has pushed the BTR model into overdrive.
From millennials starting families to retirees downsizing, renters of all demographics are looking for more space, flexibility, and lifestyle-oriented communities, the report said.
“Developers are reacting to pressure coming from growing demand, eroding homeownership affordability, and renters’ need to live in spacious homes in highly amenitized communities,” the report stated.
Rising mortgage rates and sky-high home prices have sidelined many would-be buyers. Meanwhile, remote work has made suburban living more appealing, driving demand for larger homes with private yards, home offices, and access to community features, the report added.
Mid-sized metros on the rise
Beyond the big names, a host of smaller markets also made headlines in 2024.
Six metros joined the “1,000+ club,” including Charlotte, N.C. (1,415 units), Jacksonville, Fla. (1,201), Huntsville, Ala. (1,098), Columbus, Ohio (1,018), and Tampa, Fla. (1,005).
Huntsville, in particular, stood out with a 255% year-over-year increase in BTR completions — the largest percentage jump in the country.
Long-term growth
Roughly 110,000 single-family rental homes are currently under construction or in the planning stages nationwide, according to Point2Homes.
Phoenix once again leads the pack with 13,010 homes in the pipeline, followed by Dallas (8,450) and Atlanta (6,644).
The build-to-rent market has undergone a complete transformation in the last half-decade. From 2019 to 2024, the national BTR inventory more than doubled — rising from 107,000 units to 217,161, according to the report.
Dallas added more than 10,000 units during that time, bringing its total to 14,682. Phoenix closely followed with 12,702 new homes.
Atlanta saw one of the most explosive growth rates: its BTR inventory surged from just 547 homes in 2019 to over 8,100 by 2024 — a fifteenfold increase.