A new housing product is rapidly gaining ground across American suburbs: purpose-built rental communities designed to look and feel like traditional single-family neighborhoods but operated as professionally managed rental properties. Build-to-rent, or BTR, has grown from a niche concept to a major segment of the housing market, attracting billions of dollars in institutional investment and reshaping how Americans think about renting versus owning.
The Scale of the Trend
According to data from RealPage and the National Rental Home Council, approximately 120,000 BTR homes were under construction or in planning as of early 2025, representing a tenfold increase from 2017. Major homebuilders including Lennar, Taylor Morrison, and Meritage Homes have launched dedicated BTR divisions. Institutional investors including Pretium Partners, Tricon Residential, and NexMetro Communities are developing large-scale BTR communities across the Sun Belt and Mountain West.
These communities typically feature detached single-family homes or townhouses with private yards, attached garages, and suburban amenities like pools, fitness centers, and walking trails. They are designed to offer the lifestyle of homeownership without the financial commitment and maintenance responsibilities that come with a mortgage.
Who Lives in BTR Communities
The tenant profile for BTR communities is broader than many expect. While some residents are younger renters who cannot afford to buy, a significant portion are older adults who have sold their homes and prefer the flexibility and convenience of renting. Empty nesters who want to downsize without the hassle of home maintenance represent a growing segment. So do mobile professionals who value the ability to relocate without selling a property.
The Economics for Developers
BTR communities are attractive to developers because they eliminate the sales risk associated with traditional homebuilding. Instead of building homes and hoping to sell each one individually, developers can lease entire communities to institutional operators or hold them as income-producing assets. The rental income stream also supports higher land prices, which has made BTR development viable in suburban markets where for-sale homes would be priced below profitable levels.
Community Integration Challenges
BTR developments have faced pushback in some communities. Local residents sometimes express concerns about neighborhood character, property values, and the transient nature of rental populations. Some municipalities have enacted zoning restrictions that limit BTR development in single-family neighborhoods. Developers have responded by improving design quality, maintaining institutional-grade property management, and engaging proactively with community stakeholders.
The Future of BTR
Industry analysts expect BTR to continue growing as a share of new housing construction. The structural drivers, including housing affordability challenges, demographic preferences for flexibility, and institutional capital seeking stable returns, show no signs of reversing. As the product type matures, expect to see greater design variety, more amenity options, and expansion into markets beyond the Sun Belt. Build-to-rent may be the most significant innovation in American housing since the suburb itself.
