South Region Continues to Lead for Build-to-Rent Development
The South continues to cement its position as the nation's build-to-rent (BTR) capital.
With roughly 36,000 BTR units under construction, the region boasts a pipeline more than three times larger than that of the West, the next closest region with about 12,000 units underway, as of August, according to RealPage Market Analytics. That concentration of activity reflects more than a development trend. It underscores how population growth, housing affordability challenges and sustained demand for suburban living continue to reshape the single-family rental landscape across the Sun Belt.
Nationally, 59,660 BTR units were under construction as of August, highlighting the sector's continued expansion. The South accounts for roughly 60% of that pipeline, with 35,579 units underway. The West ranked a distant second with 11,863 units under construction, representing about 20% of the national total. The Midwest, with 10,203 units underway, and the Northeast, with 2,015 units, account for the remaining share.
No surprise, BTR development continues to cluster in a relatively small number of markets. As of August, just 16 markets posted construction pipelines of 1,000 units or more, collectively representing about 60% of all units underway nationwide. Phoenix alone captured roughly 10% of that activity, reinforcing its position as the nation's leading BTR construction hub.
Following Phoenix, Dallas ranked second with 3,943 BTR units under construction. Atlanta placed third with 3,348 units underway, followed by Charlotte with 2,703 units and Houston with 2,692 units. Tampa was the only other market to surpass the 2,000-unit threshold, with developers actively working on 2,072 units. The remaining 10 markets in this top tier posted construction pipelines ranging from roughly 1,100 to 2,000 units, underscoring how BTR development remains concentrated among a select group of high-growth markets.
Beyond the active construction pipeline, RealPage is tracking more than 6,000 planned BTR units nationwide, excluding projects still in the earliest planning stages. Looking ahead, development activity appears poised to remain concentrated in Sun Belt markets, where strong population growth and persistent affordability challenges continue to support demand for single-family rentals.
At the same time, the pace of new deliveries shows signs of moderation. Based on projects currently under construction and their projected completion dates, nearly 40,800 BTR units are expected to deliver by the end of 2026. Deliveries are forecast to slow to roughly 33,100 units in 2027, followed by fewer than 8,000 units in 2028. Through mid-2029, the pipeline includes just over 1,400 projected completions. While additional projects are likely to enter the pipeline, the current outlook points to a gradual slowdown in new supply following the sector's recent construction boom.
The geographic concentration for BTR construction shows little sign of changing in the near term, with Sun Belt markets continuing to attract the vast majority of development activity. However, a declining delivery pipeline beyond 2027 suggests today's construction starts may play an outsized role in shaping future supply. For developers and investors, the challenge will be balancing growth opportunities against evolving economic conditions, while identifying markets where long-term demand fundamentals remain strongest.
For this analysis, RealPage classifies 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.
