As of early June, there were about 64,200 build-to-rent (BTR) apartments in development, with completion expected by the end of 2027, according to RealPage Market Analytics.
The Sun Belt maintains its position in apartment development, making up to 57% of the units now under construction. The South leads the country with around 36,840 BTR units under development (including sites under lease-up where building is still proceeding). It is anticipated that those units will be finished by May 2027.
That number was almost two times higher than the next closest region, the West. Meanwhile, 19,413 units in the West—roughly 30% of the total in the United States—are on track to be completed by the third quarter of 2027. The Midwest (5,831 units) and Northeast (2,117 units) will supply less than 10% of that amount by the end of 2026.
BTR Units Skyrocket in “Valley of the Sun”
Phoenix has long been a hotspot, drawing in many homebuyers with affordable housing options and warmer weather. In fact, most of the top 10 on the list are located in sunnier U.S. regions.
The top 10 metros with the largest share of BTR units were:
- Phoenix (11,500 units)
- Dallas (5,500 units)
- Houston (4,470 units)
- Austin (3,734 units)
- Atlanta (2,827 units)
- Fort Worth (2,687 units)
- Tampa (2,559 units)
- Charlotte (1,202 units)
- Denver (1,182 units)
- San Antonio (1,147 units)
With more than 11,500 BTR units operating there as of June, Phoenix leads its Sun Belt counterparts in terms of market share. It should come as no surprise that Phoenix accounted for almost 18% of the U.S. total, as it is regarded as the birthplace of BTR. Dallas came in second, with around 5,500 units in operation as of June. Houston, with roughly 4,470 units under construction, came in third.
There are an estimated 500 or more units being built in 21 other U.S. markets, most of which are in the South and West. Notably, 983 units are now under construction by developers in Myrtle Beach, a tiny market. Major marketplaces Raleigh-Durham, NC (936 units), and Nashville, TN (971 units), both have over 900 units under development.
RealPage is now tracking over 7,500 planned BTR units countrywide in addition to BTR units under construction, extending the runway for this single-family rental sector even though the number of projects currently ongoing in the U.S. is decreasing.
The post Assisting U.S. Housing Supply Through Build-to-Rent Construction first appeared on The MortgagePoint.
