Build-to-rent has become an attractive option for investors and developers, outperforming multifamily over the last five years and becoming more important to institutional investors. That makes sense, given the ongoing shortfall in building homes and high prices pushing people who might otherwise buy and who still want more amenities into rental markets. BTR offers an alternative to locating and obtaining single-family houses in a tight market. 

CoreVest American Finance Lender, in a larger document on BTR investment, listed five developing trends in the space that investors should consider. That changes are happening shouldn't be a surprise, as last year the mix of supply chain and labor issues as well as uncertainty around a return to the office showed that BTR strategy needed more consideration going forward.

The first of CoreVest's points is obvious on the surface: land costs continue to rise. This is true not only in gateway metro areas but in the sun belt where even large players find land acquisition to be competitive. "It's becoming extremely difficult to find affordable lots as new players continue to enter the market," the report notes. "The resulting increase in competition for land is pushing developers into new markets that were previously not considered."