The build-to-rent market is on fire, with occupancy levels at 95% and strong construction activity in most states and metros in the U.S. Nationwide, more than 110,000 new single-family homes for rent are currently under construction, and Point2Homes has just released a report about this rental construction boom.
Key Highlights
- 110,727 single-family rentals are under construction in 613 communities: When completed, this will expand existing build-to-rent inventory by a robust 53.5%.
- Texas has a big lead: The Lone Star State has 21,812 houses for rent in different stages of construction, all ready to hit the market in the near future.
- Arizona and Florida are runners-up: They each have nearly 14,000 single-family rentals in the pipeline. North Carolina lands in fourth place with more than 12,000 units.
- In terms of metros, Phoenix boasts the most ambitious numbers: With 13,113 units under construction, the Valley of the Sun accounts for nearly the entire volume of units being built in the state and over 10% of all the construction in the U.S. Dallas trails behind Phoenix with 8,470 rentals in development.
- Developers in 22 other metros are working on 1,000 to nearly 7,000 units: These will reach renters in the months and years to come.
SFR Trends to Follow
Texas and Arizona will keep their built-to-rent crowns, due to a strong job market and a shift toward environmental sustainability, respectively, adding a combined total of nearly 35,000 single-family rentals (21,812 for Texas and nearly 14,000 for Arizona). The next three states with the most single-family rentals in the pipeline are Florida, North Carolina, and Georgia.
California and South Carolina lead the way in giving renters more spacious single-family homes to choose from (4,384 and 3,567, respectively). And market leaders like Texas, Arizona, Florida, North Carolina, and Georgia will have massive percentage increases in their rental inventories. Texas’ nearly 22,000 new single-family rentals represent a 70% increase in total inventory. The total supply of single-family rentals will go up by at least 50% in all five of these leading states, with North Carolina clocking in at 152%.
And seven states will double their inventory: Nebraska (a 255% increase), Rhode Island, Delaware, New Hampshire, North Carolina, New Mexico, and Virginia.
Fifteen metros have over 1,500 new build-to-rent single-family homes underway each. Phoenix not only leads that group, with 13,113 units, but it has more single-family rentals in the pipeline than all states except Texas, Arizona itself, and Florida. The other states rounding out the top five are Dallas (8,470), Houston (4,613), Austin (4,313), and San Antonio (3,000). And the Southeast lands four metros (besides Atlanta) in the top 10. Charlotte, North Carolina, Orlando, Raleigh, and Huntsville, Alabama, all boast between 2,000 and 5,368 new single-family homes for rent currently under construction.
Click here to read more on Point2Homes’ latest report on SFR construction.
