The Sun Belt continues to lead the build-to-rent (BTR) sector with about 57% of units under construction being built there.
About 64,200 BTR units were under construction across the country last month, according to a RealPage analysis. Nearly 37,000 of those were in the South. The West follows with 19,413 BTR units under construction, as of May, while the Midwest has 5,831 units underway and the Northeast has 2,117 units in progress.
Phoenix was the top market for BTR construction with more than 11,500 units, as of June. The market, which is considered the birthplace of BTR, accounts for about 18% of all sector's construction activity.
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In a distant second place is Dallas, with 5,500 units underway as of June, and in third place is Houston with about 4,470 units under construction. Rounding out the top ten were Austin with 3,734 units, Atlanta with 2,827 units, Fort Worth with 2,687 units, Tampa with 2,559 units, Charlotte with 1,202 units, Denver with 1,182 units and San Antonio with 1,147 units.
Twenty-one additional markets across the country have at least 500 units under construction. These markets are also heavily concentrated in the South and West, the report said. Notably, Myrtle Beach has 983 units underway, Nashville has 971 units under construction and Raleigh/Durham has 938 units in progress.
RealPage noted the number of BTR projects underway across the United States is declining, but the company is tracking more than 7,500 planned units nationwide. This is creating an extended runway for the sector.
RealPage defines BTR as single-family housing that is fully detached, semi-detached, row houses, duplexes, quadruplexes and townhouses built for rental.
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Kristen Smithberg
Kristen Smithberg is a Colorado-based freelance writer who covers commercial real estate, insurance, benefits and retirement topics for BenefitsPRO and other industry publications.
