Here is Where the Most Build-to-Rent Units Are

The popular Build-to-Rent niche continues to attract attention from investors and developers, with unit numbers completed increasing about 52% between 2021 and last year, according to data from a RealPage report. As of June of this year, there were more than 700 planned and under construction BTR communities across the country with a total of about 86,543 units. More are projected with the number cited of about 116,000 units through 2026. 

However, that number may change for many reasons, from construction delays due to supply shortages, lack of workers and bad weather. The report also said those numbers do not account for projects with units still under construction where residents already live in the community.

The three busiest markets for construction underway as of June 2023 are in Phoenix, Dallas and Atlanta. Altogether, 25,000 units are being built in that combination, which represents more than a third of the country’s total number. In Phoenix, there are nearly 14,000 units or 20% of the total U.S. figures of just more than 73,000 units. The report credits Phoenix as the birthplace of the BTR prototype. Another 2,571 are planned, 3,456 are under construction/lease-up and 1,894 in lease-up.

Dallas comes in second with 6,763 under construction, 1,652 planned, 2,087 under construction/lease-up and 1,777 lease-up. In third place is Atlanta with 4,372 under construction, 851 planned, 1,415 under construction/lease-up and 1,050 lease-up.

Fourth place went to another Texas market of Fort Worth, with 3,611 under construction, 547 planned, 863 under construction/lease-up and 350 lease-up. Yet another Texas market of Houston was fifth with 2,923 units under construction, 687 planned,1,600 under construction/lease-up and 907 lease-up.

Southern markets followed with Charlotte, N.C., in sixth place with 1,791 units under construction, 20 planned, 996 under construction/lease-up and 477 lease-up. San Antonio was seventh with 1,774 units under construction, 214 planned, 283 under construction/lease-up and 390 lease-up.

Austin was eighth with 1,598 units under construction, 1,465 units planned, 281 under construction/lease-up and 555 lease-up. Nashville was ninth with 1,511 under construction, none planned, 612 under construction/lease-up and 622 lease-up. Bringing up the rear at No. 10 was Columbus, the only Midwest market to make it onto the list with 1,505 units under construction, none planned, 323 under construction/lease-up and none in the lease-up category.

In addition to the 73,000 units underway, another 13,541 are already permitted across the country. Not all permitted units get built for a variety of reasons, but they may be. In Phoenix, 2,571 units are permitted, followed by Dallas with 1,652 permitted and Austin with 1,465. The other cities with strong permitted numbers include Atlanta with 851 and Sacramento with 768.