A report released late last month ranks North Texas as the No. 1 spot in the state’s surging build-to-rent market.
The Lone Star State leads the nation with nearly 22,000 houses currently under construction that will eventually become rentals. Within the top state, Dallas-Fort Worth boasts the highest tally, with almost 8,500 single-family rentals in various stages of development.
Over 110,000 new single-family homes are under construction across the United States and slated for eventual rental. These residences, sometimes called BTRs, are deliberately created for renting, not selling.
Once completed, the 110,727 single-family rentals currently under construction in 613 communities in the United States will push the country’s built-to-rent inventory up 53.5%.
Zooming in on Texas, once the state’s current pipeline is built, inventory will increase by an impressive 70%.
Nationwide, Phoenix took the spot among metropolitan areas, recording over 13,000 units under construction. DFW followed in second place, with Atlanta in third with just under 7,000 units pending completion.
The report from Point2Homes credits Texas’ strong job market for driving its No. 1 ranking. Remote work and cultures conducive to entrepreneurship were also highlighted as pluses drawing people to Texas and Arizona.
Doug Ressler, Senior Analyst & Manager of Business Intelligence at Yardi Matrix, believes affordability is driving younger people to opt for renting over buying. Prices are also pushing them further outside of city centers.
“Millennials and Gen Z are increasingly favoring rental options over homeownership due to high property prices and student debt. BTR communities cater to their preferences for mobility, flexibility, and modern amenities,” he said, per Point2Homes.
“As urban areas become more congested and expensive, there’s a growing trend towards suburban living. BTR properties in suburban areas offer more space and affordability while maintaining connectivity to urban centers.”
Houston took the No. 2 spot in Texas with 4,613 rentals under construction. Austin followed in third with 4,313, and San Antonio recorded the fourth-highest number in the state, nearly 3,000.