South Region Developers Adding Another 37,400 Build-to-Rent Units to the Pipeline

Nearly 61% of the nation’s build-to-rent (BTR) construction pipeline remains concentrated in the South as developers and investors keep the sector active in 2026.

Across the U.S., about 61,700 BTR units were under construction as of early May, according to RealPage Market Analytics. Developers expect to complete construction on those projects through the first half of 2029.

RealPage defines BTR as single-family housing that is fully detached, semi-detached (semi-attached, side-by-side), row houses, duplexes, quadruplexes and townhouses built for rental.

With individuals remaining in the rental sector longer, BTR expands available options for renters seeking some of the benefits of single-family ownership. Limited for-sale inventory, elevated home prices and mortgage rates hovering above 6% are just a few of the factors slowing the transition to home ownership. BTR product offers options not only to “renters by choice,” but also for “renters by necessity.”

BTR has thrived in fast-growing suburban areas around major cities driven by population migration trends as well as remote and hybrid work situations. In turn, the South and West regions still lead for activity in the BTR sector with significant activity in metropolitan areas like Phoenix, Dallas, Atlanta and Houston.

More than 37,400 BTR units (including properties in lease-up where construction is ongoing) were underway in the South region alone as of early May. Another 13,000 BTR units are under construction in the West. Together those regions – home of the nation’s Sun Belt – account for some 50,400 BTR units or nearly 82% of the BTR construction pipeline.

The remaining 18% of BTR construction is found in the Midwest (nearly 9,800 BTR units) and Northeast (roughly 1,500 BTR units), accounting for 16% and 2%, respectively.

Nationwide, just 16 markets count 1,000 or more BTR units under construction, or about 63% of activity.

Phoenix, widely viewed as the birthplace of BTR, continues to lead the nation, with almost 7,300 BTR units in progress, or about 12% of the BTR construction pipeline. In a distant second, Dallas follows with roughly 3,700 BTR units progressing. Following closely behind Dallas is Atlanta where developers are working on some 3,500 BTR units.

Rounding out the top five leaders: Houston (3,000 BTR units) and Charlotte (2,900 BTR units) each account for about 5% of activity. Meanwhile, other markets of note include Nashville (2,800 BTR units), Raleigh/Durham (2,300 BTR units), Tampa (2,100 BTR units), Austin (1,700 BTR units), San Antonio (1,700 BTR units) and Indianapolis (1,500 BTR units).

A total of 20 U.S. apartment markets have 500 to 1,000 BTR units underway. Notably, Kansas City, North Port, FL and Columbus, OH each have about 1,400 BTR units under construction. Meanwhile developers in Huntsville, AL (1,300 BTR units) and Orlando (1,100 BTR units) also make the list of U.S. apartment markets with more than 1,000 BTR units underway.

Submarket activity remains heavily concentrated in the nation’s Sun Belt primarily in Arizona, North Carolina, Texas and Florida. The top 10 submarkets have 800 to nearly 3,000 BTR units being built.

Phoenix submarket Avondale/Goodyear/West Glendale leads the charge with roughly 3,000 BTR units in progress. Next, developers in Southeast Raleigh (Raleigh/Durham) are working on more than 1,500 BTR units. Developers in Bradenton (North Port, FL) have some 1,200 BTR units in the pipeline.

Closing out the top 10 submarkets were Spring/Tomball (1,200 BTR units), New Tampa/East Pasco County (1,100 BTR units), Carmel/Hamilton County (1,000 BTR units), Denton (900 BTR units), Gilbert (800 BTR units), UNC Charlotte (800 BTR units) and Central/East Huntsville (800 BTR units).

Additionally, RealPage is tracking more than 6,700 planned BTR units across the U.S. not counting units in early planning stages (pre-planned).

Rising inflation, affordability challenges (rent vs. buy) and economic uncertainty remain at the forefront of conversations around the U.S. housing market. Despite challenges, BTR offers renters prioritizing a single-family lifestyle (private yards, garages, shared amenities and professionally managed maintenance) a relevant rental solution.