After reaching record highs in 2024, Build-to-Rent (BTR) development is beginning to normalize, but activity remains well above historical levels.
According to newly released U.S. Census Bureau data, SFR/BTR housing starts totaled 68,000 units in 2025, down 19% from the sector's 2024 peak. Despite the slowdown, current construction levels still exceed all annual totals recorded before 2022.
BTR also accounted for 7.2% of all single-family housing starts in 2025, remaining above historical averages and reinforcing its growing role in the housing market.
While higher financing costs, increased home inventory, and legislative uncertainty have tempered new development, long-term demand for attainable, low-maintenance rental housing continues to support the sector.
Recent revisions to the proposed 21st Century ROAD to Housing Act have also eased some concerns for developers, improving the outlook for future BTR projects.
Bottom Line: Build-to-Rent may be cooling from record-breaking growth, but the sector remains a critical and expanding source of housing supply, supported by strong renter demand and increasingly favorable policy developments.
Source: ARBOR
