Phoenix, Dallas and Atlanta dominate development landscape for build-to-rent houses

Once a niche segment of the housing market, build-to-rent developments of townhouses and single-family houses have rapidly gained traction across the United States, with the Sun Belt emerging as a clear epicenter of growth.

Fueled by population growth and the availability of land in these areas, as well as the escalating cost of homeownership, demand for build-to-rent developments has increased.

Build-to-rent properties, or BTR, are professionally managed, purpose-built rental complexes owned by a single entity. These hybrid developments often have similar characteristics to a single-family house, like no neighbors above or below the units and a private fenced yard, but do not have the upkeep or financial requirements found in the for-sale market.

According to CoStar data, Phoenix, Dallas and Atlanta now lead the nation in build-to-rent development, reflecting strong demand from both renters seeking space and investors eyeing long-term returns in high-growth metropolitan areas.

The high barrier to homeownership is a key factor directing new housing demand to BTR properties. The median sale price of U.S. houses has climbed 50% from December 2019 to July 2025, according to Homes.com data. The surge in home prices, along with elevated mortgage rates, pricier insurance and the need for a down payment, has created a challenging environment for first-time homebuyers, driving some to the rental market.

BTR is also attractive to renters by choice, including downsizing baby boomers, those new to the market or workers in transient industries like travel nurses or the military. This renter profile prefers the low-maintenance lifestyle and freedom of movement offered by BTR, while retaining some of the amenities and features of for-sale houses.

The Valley leads the nation in build-to-rent inventory, boasting over 27,000 units of existing BTR and townhouse stock. Another 4,200 units are underway in this segment, the most of any market in the United States.

Phoenix’s strong demographic momentum and ample developable land have fueled construction for all types of housing, including the BTR niche.

The West Valley, in particular, has been a BTR hot spot in recent years as developers chase rapid population growth in Phoenix’s west-side suburbs including Glendale, Goodyear, Tolleson and Surprise.

Since the start of 2019, about 8,700 BTR and townhouse units have been completed in the North and South West Valley apartment submarkets. That amount represents about one-third of all market-rate multifamily completions during that time, on pace with garden-style construction.

Build-to-rent continues to grow in Dallas-Fort Worth as developers have almost tripled existing inventory since 2020 to roughly, 24,800 units. There are another 3,300 units under construction, ranking second nationally behind Phoenix.

The region’s leading population growth and abundant land availability have made it a prime target for builders. Developers have tapped into stalwart suburban destinations, including Frisco and McKinney, and pushed the geographic boundary into emerging cities including Prosper, Anna, Melissa and Princeton.

Among recent examples, Yardly Stoneridge was completed in Melissa in February. It features 220 two-unit attached houses with private backyards. Like conventional multifamily developments, the property includes shared amenities such as a pool and lounge areas. Developer Taylor Morrison led construction, and it is one example of traditional single-family home builders entering the build-to-rent market under the Yardly banner, adding about 1,200 units since 2020.

With about 17,500 existing single-family house and townhouse rental units and another nearly 1,000 in development, Atlanta is one of the top locations for build-to-rent developments. About 10,500 of these units have been constructed since 2023.

Over the past decade, the number of rental townhouse and single-family house developments in Atlanta has surged. Build-to-rent units have increased by an astonishing 327% since 2015, far outpacing the 34% growth in total multifamily inventory during the same period, according to CoStar data. Despite this sharp rise, single-family and townhouse rentals still represent a modest share of the market: just 3.3% of all multifamily units, up from 1% in 2015.

As demand for rental housing continues to climb in the Atlanta area, developers are increasingly targeting the region’s outer suburban and exurban developments. These less-developed pockets offer the space needed for new neighborhood construction and are seeing strong interest from renters seeking single-family houses and townhouses.

Recent data highlights Gwinnett County, including the Lawrenceville area, Bartow County and Cherokee County as the top growth areas for build-to-rent development. These outer reaches have added the highest number of rental townhouses and single-family units in the region, reflecting a broader shift toward lower-density housing options in areas with room to build and rising demand.