AUSTIN — May 2 2025

Forget the apartment tower—America’s hottest rental product is a new three‑bedroom house with a backyard and no mortgage strings attached. At least 110 000 single‑family rentals are under construction across the U.S., concentrated in Texas, Arizona and Florida, according to a January market‑sizing report that tallies more than 600 dedicated build‑to‑rent (BTR) communities in the pipeline.

Occupancy in existing BTR neighbourhoods is running near 95 %, and industry surveys show completed homes lease about 30 days faster than comparable for‑sale new builds. Builder and Developer Magazine

Why the gold rush?

Driver Detail
Millennial family renters They want space and good schools but are priced out of buying at 7 % mortgage rates.
Institutional capital Pension funds view SFR as a stable, inflation‑hedged asset class.
Lower construction risk Builders secure one equity partner instead of hundreds of individual buyers.

On‑the‑ground example
Charlotte’s 1 400‑acre River District will mix apartments, townhomes and an entire enclave of single‑family rentals, adding hundreds of “for‑rent only” houses along the Catawba River over the next three years. Axios Developers say the model lets them phase sales later while generating immediate cash flow.

Rent vs. own math (Austin metro)

  • Median new‑home price (Q1 2025): $448 000 → $3 300 / mo P&I @ 6.75 %
  • Newly built 3‑bed BTR lease: $2 850 / mo + yard maintenance included

What’s next?
Consultants at John Burns Real Estate expect annual BTR completions to peak in 2026 before stabilising, but warn that local zoning pushback could slow delivery in some suburbs. For renters eyeing flexibility—or buyers waiting out interest rates—2025 may offer the widest menu yet of brand‑new homes without the 30‑year commitment.