Construction levels across build-to-rent (BTR) properties is slowing across the U.S.
In general, housing construction has slowed. Single-family permitting is at its lowest level since 2023 and multifamily permitting and starts fell in August. BTR product has seen a similar slowdown, though construction remains robust for the moment.
As of September, roughly 63,800 BTR units were under construction across the U.S. (including properties in lease-up where construction is ongoing). That was down a slight 0.7% from June construction levels. As RealPage defines it, BTR includes single-family housing that is fully detached, semi-detached (semi-attached, side-by-side), row houses, duplexes, quadruplexes and townhouses built for rental.
While the nation’s construction pipeline of BTR units underway slipped, three of the nation’s four regions saw BTR construction climb.
The South remains an ongoing BTR construction leader. Nearly 37,700 BTR units are underway across the South region with BTR units completing through 3rd quarter 2027, according to RealPage Market Analytics. That total tallies more than the other three regions combined and outpaces the next closest region (West) by more than two-to-one. That total also is a small increase (2.3%) above the 36,840 BTR units that were underway as of June.
The West was the only region to see BTR construction decline. About 17,400 BTR units are under construction in the West region, down more than 10% from construction levels just a few months ago. Construction timelines on projects underway span through April 2028.
Another 8,700 BTR units are underway in BTR construction laggards, the Midwest (6,400 BTR units) and Northeast (2,200 BTR units) regions. Those areas have seen construction pick up 10% and 6%, respectively, over the past few months with construction on ongoing projects completing by early 2028.
From a market perspective, Sun Belt markets continue to shine in the BTR space. Leading the pack is Phoenix, the birthplace of BTR with more than 10,000 BTR units underway through April 2028. In a distant second, Dallas has some 5,800 BTR units coming online by the end of 3rd quarter 2027. Rounding out the handful of markets with 2,000 or more BTR units underway, Atlanta (3,370 BTR units), Fort Worth (3,260 BTR units), Austin (2,800 BTR units) and Houston (2,660 BTR units) will receive nearly 28,000 BTR units over the next 20 months.
Notwithstanding the downshift in construction, the BTR pipeline remains robust. RealPage is tracking more than 11,870 planned BTR units in the pipeline. With the recent government shutdown and economic uncertainty, it remains to be seen if BTR will see a significant impact moving forward.
