US: 2022 saw the construction of more than 14,500 new BTR homes across the US, a 10-year high, with southern cities taking the largest share.
Factors including the effect of inflation on mortgage rates and stagnating wages have led to a surge in the construction of BTR homes, with developers across the country meeting the growing demand for single-family rentals.
According to a recent report by Yardi, a record-breaking 14,541 new BTR homes were completed in 2022, marking a 47 per cent increase from the previous year.
The report estimates 44,700 BTR homes are currently under construction in cities across the US. These homes boast an average 97 per cent occupancy rate, surpassing the 95 per cent occupancy rate typically seen in apartments.
Among the cities leading this trend, Phoenix and Dallas lead the pack. Phoenix witnessed a tripling of its single-family rental market between 2018 and 2022, with more than 6,000 new units opening during this period. Dallas experienced a doubling of new houses for rent, with nearly 4,000 units completed between 2018 and 2022.
Also in Texas, Houston, Austin and San Antonio also feature in the top 20 trending cities. Austin, in particular, saw a 153 per cent spike in single-family rentals added between 2018 and 2022, amounting to 1,100 new homes.
While the majority of built-to-rent activity is concentrated in the south-east and the southern states, Detroit is an exception. The city nearly doubled its single-family rentals stock in the past five years, adding over 2,200 homes in 2022 alone. With substantial investments pouring into Detroit in the coming years, the demand for rentals is expected to remain high.
Other cities making the top 20 list include tech hubs such as Denver, Charlotte, Atlanta and Salt Lake City.
