The build-to-rent (BTR) market is poised to reach new heights, as median single-family rents steadily rise and deliveries near pre-pandemic levels. The sector should continue to thrive due to ongoing demographic shifts, heightened barriers to homeownership, and greater numbers of people working remotely.

For the growing number of renters by choice and would-be homebuyers deterred by elevated interest rates, BTR communities offer the same comfort and privacy as purchased homes but with fewer headaches. For example, consider cost alone. Even at the higher-middle end of the BTR market, where median rent prices rise above $3,000 a month, the rent is substantially lower than paying a home mortgage, insurance, and taxes in any major metro area.

Single-family rent growth, overall, increased 2.8% year-over-year in December 2023 with some of the biggest gains seen among lower-middle priced and higher-middle priced rental homes, according to CoreLogic's February 2024 Single-Family Rent Index. In major metros around the country, the increases are even greater—far surpassing average multifamily rent growth.