A new analysis from RealPage indicates that the built-to-rent (BTR) sector is entering a maturing phase, as activity adjusts to changing local conditions and a more cautious economic and capital environment. Markets with strong demographic inflows and limited prior BTR development are now attracting outsized attention, while previously hot hubs are cooling as developers and investors adopt a more selective, risk-conscious approach.
Overall, BTR construction remains robust, though it is slowing in line with the broader housing market. Single-family permitting is at its lowest level since 2023, and multifamily permitting and starts have declined, according to RealPage. In September, nearly 64,000 BTR units were under construction across the U.S., including properties in lease-up—a slight decrease of 0.7% from June. Despite this softening, three of the nation’s four regions still saw BTR construction growth.
Several secondary and Sun Belt markets are experiencing rapid expansion. Savannah stands out with a remarkable 92.2% increase in units under construction, more than doubling its activity in just one quarter. Raleigh/Durham surged by 68.2%, while Nashville increased by 51.8%. These traditionally emerging markets are accelerating BTR delivery in response to growing demand, population inflows and rising investor interest. Fort Worth and Atlanta also reported notable, steady growth, up 21.3% and 19.2%, respectively.
Conversely, legacy BTR powerhouses such as Houston and Tampa saw construction activity plummet by 40.5% and 42.6%, respectively. Austin contracted 25%, and even Phoenix—the nation’s largest market by volume—experienced a 13.1% decline, though it still maintains the largest active construction pipeline. Dallas, a key Sun Belt metro, reported a moderate 6.7% increase, reflecting sustained demand and a measured pace of expansion.
Regionally, the South leads the nation in BTR construction, with nearly 38,000 units underway—more than three times the combined total of the other three regions. Construction in the South rose 2.3% from June, when 36,840 units were under construction. Meanwhile, the West saw a roughly 10% decline, with 17,400 units underway. The Midwest and Northeast lagged, with 6,400 and 2,200 units under construction, respectively, although both regions have experienced modest gains in recent months.
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