2023 Most Successful Year for Build-to-Rent Sector

After seeing an all-time high of completions last year, over 45,400 single-family rentals are under construction, according to RentCafe.

By Christine Serlin

The build-to-rent (BTR) sector reached an all-time high in 2023, with nearly 27,500 homes completed. According to a new report from RentCafe, this was 75% more than in 2022 and triple the number in 2021.

This momentum hasn’t slowed down for 2024, with over 45,400 BTR homes under construction. The bulk of these homes are expected to come online in 2025, and a moderation in the pace of deliveries is projected for the years to follow.

“New homes built for the purpose of renting are having a resounding moment, rising high on the shoulders of hybrid work and millennials who are reaching their prime nesting years, but who are also finding home buying challenging,” noted RentCafe. “Combine renter demand with interest from institutional investors and well-established builders, and it’s safe to say we’re witnessing this niche at its historical peak.”