Build-to-rent (BTR) development continues to play a major role in expanding the U.S. single-family rental market, even as construction activity slows from the record levels seen in 2024.
According to newly released U.S. Census Bureau data, approximately 68,000 build-to-rent homes were started in 2025, down 19% from the previous year's peak. Despite the decline, construction remains well above historical averages, highlighting sustained demand for purpose-built rental communities.
BTR projects accounted for 7.2% of all single-family housing starts in 2025. While this is lower than the 9.0% share recorded at the 2024 peak, it remains significantly higher than pre-2022 levels, when the sector rarely exceeded 6% of new single-family construction.
Industry analysts attribute the slowdown to broader market conditions, including higher financing costs, rising home inventory, and more cautious builder sentiment, rather than weakening demand. Many households continue to seek the space and privacy of single-family homes without the financial commitment of homeownership, supporting long-term demand for rental communities.
The sector also faced uncertainty from the proposed 21st Century ROAD to Housing Act, which initially included provisions that developers said could discourage new projects. However, revisions passed by the U.S. House removed the proposed seven-year resale requirement and expanded exemptions for purpose-built rental housing, easing concerns across the industry.
While build-to-rent construction has normalized after its record-breaking expansion, analysts expect the sector to remain an important contributor to the nation's housing supply as demand for quality single-family rental homes continues to grow.
Source: Arbor
