Build-to-Rent Construction: A Key Solution for U.S. Housing Supply Challenges

As of June 2025, the United States is witnessing a surge in Build-to-Rent (BTR) developments, with over 64,000 units under construction, poised for completion by the end of 2027, according to RealPage Market Analytics. This growing trend plays a crucial role in addressing the nation’s ongoing housing supply crisis, particularly in areas where demand for rental properties is outpacing supply.

The Sun Belt region continues to dominate the BTR construction landscape, accounting for 57% of the units currently in development. The South, with approximately 36,840 BTR units in progress, leads the nation in apartment development. These projects are expected to wrap up by May 2027, a timeline that highlights the region’s pivotal role in expanding affordable housing options. The South’s BTR development is nearly double that of the West, where 19,413 units are projected to be completed by the third quarter of 2027. Meanwhile, the Midwest and Northeast regions have relatively smaller shares, with the Midwest contributing around 5,800 units and the Northeast approximately 2,100 units, both well below the 10% threshold of total BTR developments.

Sun Belt’s Dominance in BTR Units

Phoenix, Arizona, has emerged as the undisputed leader in the BTR space, with a staggering 11,500 units under development. As one of the fastest-growing cities in the U.S., Phoenix boasts nearly 18% of the nation’s total BTR units, reaffirming its status as a key player in this growing sector. The city’s appeal lies in its affordable housing options, warmer climate, and growing population, all of which have made it a magnet for new renters and homebuyers alike.

Other Sun Belt metros are also seeing significant activity in BTR developments. Dallas, Texas, comes in second with around 5,500 units under construction, while Houston follows closely with 4,470 units. Austin, Atlanta, and Fort Worth round out the top five metros, each contributing thousands of units to the growing BTR sector. These cities are benefiting from a combination of factors, including economic growth, lower taxes, and relatively affordable living compared to other U.S. metros.

Expanding Across the Nation: Smaller Markets in the Spotlight

While the South and West dominate, smaller markets are also seeing a rise in BTR projects. Myrtle Beach, South Carolina, for instance, is home to 983 units under construction, an impressive number for such a small market. Similarly, Raleigh-Durham, North Carolina, and Nashville, Tennessee, are both seeing an uptick in BTR developments, with over 900 units planned in each city.

This expansion reflects the growing demand for rental properties across the country, as more Americans seek flexible living arrangements amid rising home prices and limited inventory. BTR communities, which offer single-family homes for rent, provide an attractive option for those who may not yet be ready to buy but still desire the space and amenities of a traditional home.

A Long-Term Solution for Housing Affordability

The BTR sector is expected to remain a key player in addressing the housing affordability crisis, particularly as the number of homes being built for sale continues to fall behind demand. RealPage is tracking over 7,500 additional planned BTR units across the country, a promising sign for the future of single-family rentals. While the pace of new projects is slowing in some areas, the continued development of BTR units reflects the growing recognition of this model as a viable solution for the nation’s housing needs.

In addition to providing housing options for renters, BTR developments also have the potential to stabilize housing markets by offering an alternative to homeownership. As more people are priced out of the home-buying market, BTR homes provide an essential lifeline for those seeking quality living spaces without the commitment of homeownership.

Conclusion

With the increasing demand for housing and rental properties, the Build-to-Rent sector is playing a pivotal role in reshaping the U.S. housing market. As development continues to surge, especially in the Sun Belt, the BTR model is helping to meet the needs of renters while also providing an opportunity for real estate investors to tap into a growing market. Whether in large cities like Phoenix or smaller, emerging markets like Myrtle Beach, BTR developments are becoming a cornerstone of the nation’s efforts to address housing affordability and availability. For direct financing consultations or mortgage options for you visit 👉 Nadlan Capital Group.